Coronavirus lowers apartment rental prices in Budapest

OTP Ingatlanpont experts have mapped apartment rental prices and the real estate market in Budapest. Summer, and especially July, is generally a period of stagnation in the real estate industry due to the move of students to Budapest just before the universities start in September. However, due to the coronavirus outbreak and the impending restriction on short-term apartment rentals, like Airbnb, rents have come down in Budapest this year, and the consolidation of the housing market has ended a period of sharp increase in residential property prices, because well.

The changes are well illustrated by the fact that a 50 square meter apartment in good condition in central areas, which previously cost 150 to 160,000 HUF (424 to 452 EUR) per month (excluding utilities), now costs no more. only about 120 HUF. 130,000 forints (339-367). Ádám Heinrich, Senior Commercial Advisor at OTP Ingatlanpont, Recount that “as Airbnbs freezes [due to the coronavirus], owners have started to move towards long-term rental 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 attractive price even in the central areas of the city if one looks in the category of fifty square meters.

The coronavirus epidemic and the cessation of tourism have also lowered prices in the city center, especially in the so-called holiday district. The rents of many apartments have slipped below the shocking limit of 100,000 HUF, which was previously unthinkable. Before the outbreak, even a less favored basement studio could have been rented for 100,000 HUF, and now small furnished and renovated ground floor apartments are being offered for 80,000 HUF. The drop is even more important for large apartments.

Heinrich added that “in March and April, many landlords voluntarily offered trusted tenants a rent cut because they feared losing them and not finding new tenants to replace them. The market was also hit by airbnb apartments, which found themselves without tourists. It also contributed to the drop in 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 arrondissement, the average price per square meter was HUF 703,000, while it was around HUF 597,000 and 662,000, in the 8th and 9th arrondissements, respectively. 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 decline and potential buyers are currently waiting for a further drop in real estate prices.

featured photo: Balázs Mohai / MTI

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