The announcement of Hungary’s university admission score thresholds traditionally marks the start of the busiest season on the rental housing market. This year, however, demand is starting from a weaker base than in previous years. According to ingatlan.com, around 75,000 phone enquiries were made about rental properties during the first half of July, a 4% decrease compared with the same period last year and the lowest early-July figure in the past five years.
The property portal said one of the main reasons behind the decline in rental demand is the Otthon Start (Home Start) programme, which has encouraged more first-time buyers to purchase homes instead of renting. Demand in May was 11% lower than a year earlier, while June saw a 5% decline.
László Balogh, chief economist at ingatlan.com, noted that although the publication of university admission results usually triggers a surge in demand, this year’s peak rental season is beginning at a much more subdued level. In Budapest, weaker demand has already led to lower rents, while in several major university cities outside the capital, rental prices have continued to rise.
He added that demand had already started to weaken during last summer’s rental season following the announcement of the subsidised mortgage programme for first-time homebuyers, and its effects are still being felt. As a result, no major boom in rental demand is expected this summer.
In Budapest, the median monthly rent for a room remained unchanged at HUF 110,000, while apartments up to 40 square metres also maintained a median rent of HUF 200,000. The city’s overall median rent for apartments fell from HUF 270,000 to HUF 260,000 compared with July last year.
Across Hungary’s county seats, the median monthly rent for apartments up to 40 square metres increased from HUF 120,000 to HUF 130,000, while the overall median rent rose from HUF 170,000 to HUF 180,000.
Among the country’s largest university cities, Debrecen has the most expensive studio apartments, with a median monthly rent of HUF 170,000. Comparable apartments are offered for HUF 160,000 in Szeged and HUF 150,000 in both Győr and Székesfehérvár. More affordable university cities include Pécs, where the median studio rent is HUF 140,000, and Miskolc, where it is HUF 110,000.
Source: MTI
