Astonishing apartment prices in Budapest

According to, a 27 year-old office employee, who paid HUF 60 thousand for a month two years ago, should have to pay the double from September.

The man will accept it and will pay it with his girlfriend, because they couldn’t find a cheaper one now. However, real estate market also resurrected, but apartments became much more expensive. In 2014, the articles wrote about an average 20%-increase, but they wrote about 40-50%-increase this spring.

The problem is average Hungarian salaries didn’t increase at a pace as the prices of apartments to rent. The average gross salary increased by 6% from 2013 to 2015. It was HUF 230 the year before last and it is HUF 246 thousand this year. This change, no matter how beneficial, but it’s dwarfed by the increase of downtown rental prices. Hungarians are less and less able to afford the apartment in Budapest. One of the reasons for the rise are low interest rates, but this approach is not necessarily correct. It’s a fact that those people are not affected seriously by the financial crisis can get loans easier, so they easier buy houses, thereby narrowing the apartment supply. However, low interest rates also make the purchases of small inventors easier and they often buy houses for rent. A more important reason is that apartments were hardy built in Hungary in the last 5 years. But by far the most serious effect is the appearance of Airbnb in Budapest. It was originally invented to the owners could give their flats for rent easily and the travelers could get accommodation cheaper than a hotel. Tourism in Budapest is quite strong, so there is a significant demand for flats advertised on Airbnb. According to, in the neighborhood of the City Park, apartments are offered for HUF 15, 20 or even for 28 thousand a night. Calculated as HUF 20 thousand a night, it would be enough to give the apartment for rent for 7 nights and the property would make more money than the HUF 120 thousand-rental price. Neither the Budapest local government nor the central government haven’t changed the rules for rental, but many newspapers wrote the government is preparing some kind of legislative amendment. Until then, the tax authorities will audit them.

Source: / Daily News Hungary

Photo: Europress AFP Images

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