Rents stopped rising in September, with supply rents virtually stagnating nationally (+0.1%) and falling slightly (by 0.3%) in the capital. In Budapest, rents were lower than in the previous month in all groups of districts except the outer districts of Pest. Meanwhile, real rents decreased by 0.2% nationally and by 0.6% in Budapest.

Rent growth stopped in September

After a faster pace of increase at the beginning of the summer, rent growth slowed down again and then stopped. In September 2023, compared to the previous month, supply rents increased by 0.1% nationally and decreased by 0.3% in Budapest. September rents were 12% higher than in the same period of the previous year both nationally and in Budapest, and 94% and 84% higher than in the base period of 2015.

Compared to the pre-pandemic peak in January 2020, nominal rents in September 2023 were 33% higher nationally and 29% higher in Budapest. However, taking the CPI into account, real rents were 7.7% and 11% lower than before the pandemic. Compared to the previous month, real rents decreased both nationally (-0.2%) and in Budapest (-0.6%).

In the capital city, rents fell by 0.3% in the inner districts of the Pest side and by 1.0% in the transitional districts, while they rose by 1.5% in the outer districts over the month. Supply rents were 1.8% lower in the hilly districts on the Buda side and 1.0% lower in the other districts compared to the previous month. Over the course of a year, all districts except the Buda hill districts (9.4%) have seen rents rise by 12-13%.

Supply characteristics have still not changed significantly

By September 2023, 56% of the advertisements considered were for housing in the capital, 29% in a city with county status and 13% in a city without county status. The average floor area of the dwellings advertised for rent was 55 m² in Budapest and 57 m² in the cities with county rights. In the smaller municipalities - non-county towns and villages - dwellings for rent were generally larger, with an average floor area of 67 m². The dwellings for rent with the largest floor area (78 m² on average) continued to be advertised in Pest county.

Nationally, the vast majority (92%) of the advertisements observed were for dwellings in multi-dwelling buildings, with the remaining 8% or so for detached houses. In Budapest, on the other hand, only 4.0% of the dwellings for rent were detached houses. In the first nine months of 2023, 43% of the advertisements in the capital and 44% nationally were from private individuals.

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