May 13, 2022
Rents in Budapest have increased by 35% in a year, while they have jumped by about 30% in certain rural cities. This astounding growth surpasses Hungary’s 21-year high inflation rate. In May, Budapest rents reached a new high. Prices in Budapest increased by 2.9 percent year over year, while prices nationwide increased by 2.3 percent, meaning annual rises of 18.2 percent and 19 percent, respectively.
However, when compared to the same period last year, the rental price increase is much more extreme. Budapest’s average rent climbed by 35% in a year, whereas most major cities had increases in the double digits, ranging from 10% to 30% on average.
The significant decline in supply is one of the reasons for the huge price increase in the rental market. The number of persons seeking for rentals in Hungary was extremely high in March and April. In comparison to March 2019, demand in the market increased by 14% nationwide. This is due in part to the desire of many Ukrainian refugees to settle in Hungary, as well as the rise in mortgage interest rates.
Source: Daily News Hungary
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