Rents continued to rise: they increased by 2.7% nationally and by 2.4% in Budapest in July compared to the previous month. The biggest increase among the capital's districts was recorded in the inner districts of Pest (3.7%). Rental prices in Budapest were on average 9.2% lower than the peak in January 2020, while in the rest of the country rents have already risen above pre-pandemic levels.
Rents have been rising steadily for six months
Rents fell in several waves in 2020, before rising again from February 2021. In July 2021, rents continued to rise at an accelerating pace: compared to the previous month, rents were 2.7% higher nationally and 2.4% higher in Budapest. Nationally, prices rose by 1.4% year-on-year, but in Budapest they were still marginally down by 0.2% compared to July last year. The national index in July 2021 was 138% of its 2015 base period level, while the index in Budapest stood at 130%.
Supply rents rose in all districts of the capital compared to the previous month, most strongly (by 3.7%) in the inner districts of Pest, by more than 2% in the Buda Hills and 'other' districts, and by slightly slower rates in the transitional and outer districts of Pest.
Compared to the low point in January 2021, apartments for rent in Budapest were advertised at an average of 8.5% higher rents, which basically meant an 8-9% increase in prices by district group, with only the outer districts of Pest showing a smaller increase (7.0%) since January this year.
July's rent index for the capital as a whole was still slightly below the same month last year (-0.2%), but changes varied by district group. Supply rents in the inner districts of Pest remained lower (-1.9%), while in the transitional districts of Pest they were 2.8% higher than in July last year.
Most dwellings are advertised through estate agents
The concentration of the rental market in large cities, and the strong predominance of the capital, is clearly reflected in the distribution of advertisements taken into account for the calculations. There has been no significant shift in the proportions: 66% of the advertisements taken into account in the first seven months of 2021 were for housing in the capital and 24% in a city with county status.
In 2021, the average floor area of dwellings advertised for rent by the end of July was 53 m2 in Budapest and 56 m2 in the cities with county status. In smaller municipalities, the apartments for rent tend to be larger, their average floor area was 64 m2 in the same period. The rentals with the largest floor area continued to be advertised in Pest County, with an average of 72 m2.
Due to the dominance of the capital city, the vast majority (95%) of the advertisements observed were for dwellings in multi-family buildings, with the remaining 5.3% being for detached houses. In Budapest, only 2.6% of dwellings for rent were detached houses.
In January-July 2021, 36% of ads in Budapest and 38% of ads nationwide came from individuals. In the year to date, the distribution of advertising between private advertisers and real estate agents has shifted noticeably towards the latter compared to the average for 2020.
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