OTP Ingatlanpont experts have mapped apartment rental prices and the real estate market in Budapest. Summer, and particularly July, is usually a period of stagnation in the real estate sector due to students moving to Budapest just before universities start in September. However, due to the coronavirus outbreak and the impending restriction on short-term apartment rentals, such as Airbnb, rents have fallen in Budapest this year, and the consolidation of the housing market has ended a period of sharp rise in residential property prices while Bien.
The changes are well illustrated by the fact that a 50 square meter apartment in good condition in the inner quarters, which previously cost 150-160,000 HUF (424-452 EUR) per month (excluding utilities), now costs only about 120 HUF-130,000 forints (339-367 euros). Ádám Heinrich, Senior Business Advisor at OTP Ingatlanpont, Told 24.hu that “when Airbnbs freezes [due to the coronavirus]the owners have started to switch to long-term rentals or have put these properties on the market (…) Due to the surge in supply, it is now possible to find an apartment at a fairly good price even in the neighborhoods centers of the city if one seeks in the category of fifty square meters.
The coronavirus epidemic and the stoppage of tourism have also caused prices to fall in the city center, especially in the so-called party district. The rent for many apartments here has slipped below the shocking limit of 100,000 HUF, which was previously unthinkable. Before the epidemic, even a less privileged basement studio could be rented for 100,000 HUF, and now small furnished and renovated apartments on the ground floor are offered for 80,000 HUF. The drop is even greater for large apartments.
Heinrich added that “in March and April, many landlords voluntarily offered trusted tenants a rent reduction because they feared losing them and not finding new tenants to replace them. The market was also hit by airbnb apartments, which were left without tourists. This also contributed to lower prices, as many tenants took the opportunity to move to a cheaper but better equipped apartment.
According to the OTP Residential Real Estate Value Map, last year in the 7th district the average price per square meter was 703,000 HUF, while it was around 597,000 and 662,000 HUF, respectively, in the 8th district. and 9th arrondissements. According to experts, these prices show an increase of 231, 158 and 166%, respectively, compared to prices six years earlier. However, the real estate market is also showing a slowdown and potential buyers are currently waiting for a further drop in property prices.
featured photo: Balázs Mohai/MTI
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