Students Expected to Drive Rental Market Boom in Capital
Photo by Peter Gudella / Shutterstock.com
Budapest and surrounding regions are set to experience a surge in demand for real estate as students receive their university acceptances and begin to rent sublets in the city.
As the time gets closer to the announcement of the university point limits when tens of thousands of students receive news of which city they will further their education in, the real estate market in Budapest, as well as areas surrounding the capital, are taken by storm. Otthon Centrum (OC) provides a city-by-city breakdown of average costs, student preferences so far, both categories compared to data from previous years.
"In rural cities, the rate of price increases exceeded that of Budapest again this year, and by a significant margin," Gábor Soóki-Tóth, head of analysis division at OC says.
Based on contracts concluded in the first six months of this year, the monthly rent for brick condominium apartments in Budapest is HUF 236,000, a 14% increase on last year's average. This general calculation can be further categorized based on apartment costs distributed in various districts of Budapest.
District Based Costs
Soóki-Tóth discussed the costs of apartments which vary district to district in the capital. He shared that on average, apartments in District IX cost HUF 230,000, HUF 240,000 in District XI, and HUF 200,000 in District VIII. More expensive apartments are found in District V for HUF 305,000, in District II for HUF 341,000, reaching costs as much as HUF 341,000 per month in District II.
According to the statement from OC, “rent has increased in most districts (typically between 5-20%), however, in District III and VII, as well as in the majority of the outer districts of Pest, there were no significant changes.”
In addition to the location, the size of the property also significantly influences the decision students must make. In the capital, the average monthly rent for one-room apartments is HUF 147,000, while two-room apartments are asking for HUF 215,000, and three-room apartments average around HUF 300,000. The expert said that the bigger the rental apartment in Budapest, the more significant the ratio of area to price difference.
County Based Costs
OC also looked at regions further from the capital, such as Székesfehérvár, Miskolc, and Debrecen.
Székesfehérvár is the most expensive rural county seat, where the average monthly rent is HUF 210,000. In Győr and Pécs it costs HUF 170,000 to rent. Owners in Szeged, Miskolc and Debrecen are still asking HUF 140,000 for a month. In the mentioned cities, the renter must pay HUF 100,000 for one-room apartments, HUF 145,000 for two-room apartments, and HUF 215,000 for three-room apartments.
Throughout the country, panel apartments are the cheapest rental property. The average price of prefab apartments is HUF 176,000 in downtown Budapest, HUF 162,000 in Buda, HUF 148,000 in the outer districts of Pest, and HUF 110,000-120,000 in county seats, depending on the size of the settlement.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.