Rents continued to increase in April, rising by 0.7% nationally and by 1.7% in the capital over the month, in Budapest they rose in all district groups except the Buda hill districts. The year-on-year growth rate of nominal rents continued to be below inflation, leaving them 4-6% lower in real terms than a year earlier. Compared to the previous month, real rents were stagnant at the national level and rose slightly in Budapest.
Rents continued to rise in April
After a slowdown at the end of last year, 2023 brought a faster pace of rent growth in the rental market. In April, compared to the previous month, supply rents rose by 0.7% in Hungary and 1.7% in Budapest.
April rents were 17% higher nationally, 19% higher in Budapest than in the same period last year, and 81% and 75% higher than in 2015.
Nominal rents have been above the January 2020 peak for more than a year, and in April 2023 they were 25 % higher nationally and 23 % higher in Budapest. However, taking the CPI into account, real rents were 13% and 14% lower than before the epidemic. Compared to the previous month, nominal charges rose at a rate broadly in line with consumer prices nationally, leaving real rents essentially unchanged from the previous month, while in the capital, the increase in nominal charges above inflation led to a slight rise in the real index.
In the capital, rents rose in all district groups except in the Buda hill districts (-1.9%) during the month: by 1-2% in the outer and inner districts of Pest, by more than 2% in the transitional districts of Pest and by close to 4% in the other districts of Buda. Over a year, the highest increases were recorded in the inner districts of Pest (21%) and the lowest in the mountain districts of Buda (16%).
Supply of dwellings for rent in the capital remains almost a fifth below a year earlier
In the first four months of 2023, 57% of the advertisements taken into account were for housing in the capital, 28% in a city with county status and 14% in a city without county status. The average floor area of the dwellings advertised for rent was 54 m2 in Budapest and 57 m2 in cities with county rights. In the smaller municipalities - non-county towns and villages - the dwellings for rent tended to be larger, with an average floor area of 66 m2. The largest rentals (76 m2 on average) continued to be advertised in Pest county.
Nationally, the vast majority (92%) of the advertisements observed were for flats in multi-dwelling buildings, with the remaining 8% or so for detached houses. In Budapest, however, only 3.8% of the dwellings available for rent were detached houses. In January-April 2023, 42% of advertisements in the capital and 44% nationwide were from private individuals.