According to the KSH-ingatlan.com rent index, rental prices remained unchanged in February, while Budapest even experienced a slight decline. Meanwhile, the national rental supply expanded by over 26%, ingatlan.com reported to MTI on Wednesday.
The report detailed that rental prices nationwide increased by 0.2% compared to January, which is considered stagnation, while in Budapest, rents dropped by 0.4% within a month. In contrast, January saw a 2% rise in rental prices both nationally and in the capital compared to the previous month.
According to ingatlan.com, the average rent for residential properties listed in Budapest at the beginning of March was 250,000 HUF, the same as a year ago. Prospective tenants in the capital could choose from nearly 11,000 available rental properties, a 21% increase from the previous year.
The XIII district has the highest number of available rental properties, with nearly 1,500 homes waiting for tenants, marking a 50% increase compared to March last year. The average rent in the district remained at 250,000 HUF.
Among major county seats with the most active rental markets, Debrecen saw a 116% surge in rental supply over a year. However, due to strong demand, the average rent rose by 15%, reaching 230,000 HUF. In Szeged, the supply expanded by 8%, accompanied by a 16% increase in rental prices, bringing the average rent to 160,000 HUF at the beginning of March. In Győr, 31% more rental properties appeared on the market, with the average rent currently at 190,000 HUF, reflecting a moderate 6% increase, according to the report.
László Balogh, chief economic expert at ingatlan.com, explained in the statement that the slight decrease in Budapest’s rental prices is primarily attributed to the more expensive Buda districts, as rental prices continued to rise in the more affordable outer districts of Pest.
On the sales side of the housing market, investors are becoming increasingly active, suggesting that rental supply will continue to grow, which could curb rent increases in the medium term.
The expert added that the stagnation of rental prices in February is also significant because this period is usually busy due to the start of mid-year college and university programs. Over the past 10 years, February typically saw a 1-2% increase in rents compared to January, but this year, prices remained unchanged.
(MTI)
