After the slowdown at the end of 2022, this year brought a faster rate of rent increase in the apartment rental market, but in March 2023, the increase in prices slowed somewhat: compared to the previous month, the offered rents increased by 0.8% nationally and by 0.9% in Budapest. Compared to the same period of the previous year, rents in March were 18% higher nationally, 19% higher in Budapest, and 80% and 72% higher than the base period of 2015, respectively.
The level of nominal rents has been rising above the January 2020 peak for more than a year, in March 2023 it exceeded it by 24% nationally and 20% in Budapest. At the same time, taking into account the consumer price index, real rents were 13% and 15% lower than the level before the epidemic. Compared to the previous month, the nominal fees increased practically to the same extent as the consumer prices, which is why real rents basically remained at the previous month’s level.
In the capital, rents rose in all district groups in one month: in the internal and transitional districts of Pest, as well as in other districts of Buda, by less than 1%, and in the mountainous districts of Buda and the outer districts of Pest by 1.5%. Over the course of a year, the price increase was the largest (20%) in the inner districts of Pest, and the smallest (16%) in the other districts of Buda.
The most expensive and cheapest locations
Based on the offer of ingtalan.com, apartments for rent are still the most expensive in Budapest, as before. In the capital, landlords ask HUF 220,000 per month on average. Within this, most of the II. and in District V, where the average is HUF 300-320 thousand. I., VI. are even more expensive than the capital average. and the XII. district as well, both of which currently average HUF 250,000. The III., IX., XI. are similar to the capital average. and XIII. district, in which the average rents are between HUF 210-230 thousand. The cheapest district of the capital is the XXIII., which is the XX. and the XVII. stone, in these you can find an average-sized apartment for rent for 130-140 thousand forints.
There are no surprises in the numbers in the countryside, Veszprém, which has been in the lead until now, has become more expensive, where the average rent is already over HUF 180,000. Székesfehérvár took second place with HUF 160,000, followed by Győr and Debrecen with HUF 150,000 each. Among the larger southern university towns, the average is HUF 130,000 in Pécs and HUF 125,000 in Szeged. The cheapest is in Salgótarjá with HUF 90,000, followed by Békéscsaba, Kaposvár and Miskolc with HUF 100,000.
Portfolio Property X 2023
Cover image source: Getty Images