Budapest Rental Properties Can Be Rented out Like Hot CakesSeptember 27th, 2016
There is a huge boom in the Hungarian rental property market: Landlords in Budapest can expect to have the shortest wait to find tenants. They can find a tenant within an average 10 days although price growth has continued this year.
The fastest-selling properties are the so called prefab flats in panel buildings, which are rented out within an average 8 days, but brick apartments can be rented out very quickly, in 11 days. This August there has been an increase in the Hungarian property market also due to the hot rental market. In overall, more people rent an apartment, which leads to property as well as rental price growth – said László Balogh, leading economic expert in a programme of ATV. According to Balogh prices have grown by 15-20%.
This summer several students’ fate was decided by the announcement of the entrance exam results and the fight to find a decent university rental has started. Students, who did not the dormitory places at the end of August, have no other choice than renting an apartment. According to the economic expert this will further enhances price increase. Not only demand generated b university or college students has growing the prices but also the fact that more people tend to choose to rent an apartment instead of buying one.
Not even the growing prices can stop homeowners to rent an apartment within just one and a half week. Surveys show that between January and July 60 % more properties were rented out than last year. The expert also added that nowadays young people decide on buying an apartment or taking out a loan much later than the previous generation because many young people do not know in which town or even country she or he would like to live so they do not want to committed by a home loan for 10 or 15 years.
Data by the Central Statistical Office indicates that one third of the home movers chose a rental instead of purchasing an own property in the last 10 years. Beside demographical reasons (marriages, child births, and separation) the number of people who decided to change their homes to get closer to their workplace has risen to more than a double –explained the economic expert.