How much higher the rental fees can raise in Budapest?


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Compared to Western European countries much fewer people rent an apartment or a house in Hungary. Nevertheless, the rental sector is an important part of the property market here. The Hungarian rental market, mainly the capital, has recovered from the crises and both the number of sales and the price has been increasing for a considerable period of time.



A Short European Comparison


Renting a property is more common and more traditional in Western Europe than in the East. This is also reflected in a list showing the average of owner occupied properties, where six Eastern European countries – including Hungary – are at the top of the list. In Europe the highest proportion of people renting properties to live in was reported in Germany, Austria and Switzerland. In the former two almost 50% of the houses are inhabited by tenants, whereas in the latest more people live in rentals than in owner occupied flats.

While in 2011 only 8 % of the Hungarian population lived in rents, by 2015 this number had gone up to 11 %. There are obviously massive differences between different parts of the country and social groups. We mustn’t forget to make a difference between market based private rentals and subsidized apartments owned by the municipalities working on the basis of social market economy.


Long-term Rentals in Budapest

In Hungary the highest proportion of people renting an apartment is in Budapest. 11% of the population of the Hungarian capital rents flats and 6 % lives in subsidised houses. Overall, 17 % of the people in the capital live in a rental, which means that every six resident rents a flat.

Rentals According to Income Situations


At first it may be assumed that people with higher incomes can afford to spend a part of their salary on renting an apartment, however, in reality it is just partly true. The proportion of the people who live in rentals was the highest in case of people with the highest income, but almost the same amount of people - every tenth resident – rent a flat among the lowest income groups. This proportion is the lowest among the people who are at a little lower level than the average national income.

In households, where the rental price reaches the 30 % of the income, gradual financial difficulties can arise, preventing potential domestic disruption. Considering the price of the average rental - 100,000 HUF per month – we can suppose that two third of the Hungarian households can’t afford to rent an apartment at all.

(Source: http://www.portfolio.hu)

 

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