Investment housing rent yield down 25%
Photo by Pixelbliss / Shutterstock.com
Yields on the rent of investment housing may have fallen by as much as 25% in 2020 compared to a year earlier, due to the more moderate rise in housing prices, the coronavirus epidemic and the planned tightening of short-term housing spending, according to Takarékbank, writes Világgazdaság.
Photo by Pixelbliss / Shutterstock.com
Despite this, analysts at the Takarék Index do not expect mass sales of investment homes in the short-term because real estate investments are still value-based.
The impact of the coronavirus epidemic has sensitively affected the housing rental market in large cities, and especially in downtown Budapest.
Short-term spending was fundamentally affected by the drastic decline in international tourism, which domestic tourism could not make up for.
In the case of the long-term market, the limited operation of universities, the shortage of foreign students, and the decline in the number of people working in the tourism and services sector have reduced rental needs.
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