There can be a slight decrease or stagnation in the next part of the year according to some real estate market experts.
The drop in prices can be due to the constantly growing supply and decreasing demand. The lettings agencies also report that there has been a 41 % annual growth in the number of rental houses countrywide and in Budapest by 37 %, however, demand has fallen by 13,5%.
April showed a gentle fall in prices: in Budapest the average rent cost became 150.000 HUF and 160.000 HUF, countrywide it was 140.000 HUF.
Considering that it can’t be financed from a 150.000 HUF average salary, the rental cost is still high. It also explains why apartment sharing has become so popular. It indicates that people looking for rental apartments have been pushed to their limits; hence, in short term prices can either go down or stagnate – added László Balogh property expert.
The slight decrease of rental prices does not involve prices returning to the former rate of 50. 000 HUF and 70.00 HUF, however, it shows that due to the low interest rate environment there have been a lot of people investing into properties. Property rentals can be very profitable reaching 6-7 % output as opposed to the bank interest of 2-3 %.
(Source: http://24.hu/fn/penzugy/2016/04/22/tovabb-csokkennek-az-alberletarak)
