Huge upheaval brewing in the Hungarian property market

The madness in the rental housing market is about to begin soon, as students searching for apartments flood Budapest. But what can one expect? Well, according to experts, not much good, as an increasing number of people are shifting towards the rental market.

The rising interest rates, inflation and fluctuations in the euro exchange rate pushed many towards the rental market instead of purchasing properties. The interest has not diminished since then, explained Károly Benedikt, the PR and analysis manager of Duna House. He added that the demand for rental apartments is growing continuously, while the supply remains relatively limited in comparison, writes Pénzcentrum.

High demand, low supply

“Although the increase in housing prices came to a halt and the demand significantly declined by the end of 2022, it is not typical seeing property owners selling the properties they previously purchased as investments. Investors are typically not looking to sell now; instead, an increasing number of people are turning their savings into real estate investments.”

-said Benedikt about the prospects of property ownership.

There haven’t been any changes in the offerings of Otthon Centrum (OC) in recent times. The current supply remains the same both nationwide and in the capital as it was a year ago. The clear increase in prices indicates a growth in demand, while the supply has not been able to expand. This explains the higher competition for rental apartments.

Student expectations

The high school graduation exams are already underway, and soon the admission scores will be revealed. This will set the Hungarian rental housing market in motion, as it always signifies a significant surge in demand.