Average Sales and Rental Prices in Budapest
The ranking of the top Budapest districts reflecting average price per m2 is the following (used and new-built alike), starting from the most expensive: 2 (Buda), 5, 1 (Buda), 12 (Buda), 6, 11 (Buda), 13, 3 (Buda), 14, 9. The top Buda districts in “affluency” order are 2, 1, 12, 11, and 3. The top Pest districts: 5, 6, 13, 14, 9, 7, and 8. Note these are based on average figures for the districts, which take into account the cheapest panel block flats as well. The Budapest apartment market is very irregular, where the average price difference between the cheapest and the most expensive apartments sold in every district is 2300 EUR/m2. In districts 5, 2, and 1 this difference is over 4000 EUR/m2. This means that with a little revitalization in the area, the building, and the apartment itself, there is tremendous room for value increase and profitable resale.
The cost on average of an apartment in the 5th district is 156,000 EUR, while in the neighboring 7th district it is merely 79,600 EUR (figures based on 3-4000 units advertised for sale most recently in each district, old and new alike). The average m2 price in district 5 is around 2000 EUR, while in other Pest districts favored by tenants and buy-to-let investors, it is around 1500 EUR.
The districts where most apartments are advertised for rent (old and new) are 5 and 2 (with 1500 units on the market in each district), followed by Pest districts 6 and 13 (with 1000 units each). The next in line are 11, 12, 1, 7, 14, 9, and 8. The statistics carry a double meaning, namely that the rental market is the most active in these districts, at the same time most of the vacancies are found here. The number of apartments available for rent just in the central and most popular 5th district amounts to the number of apartments available in 14 of the least popular districts put together (on the most popular Internet classified ads site)! There are 23 districts in Budapest in all.
Residential rent in the top districts is around 10 EUR/m2. This applies to higher-floor street-view apartments in nice buildings and quiet streets. The final rental price largely depends on the number of separately accessible bedrooms. Investors are encouraged to maximize the number of bedrooms in proportion to the m2 size. Recommended combinations are typically 65-75m2 with 2 bedrooms, or 100m2 with 3 bedrooms. If it is a studio apartment, the lower the m2 size, the better.
Location above all
As in any other city, real estate value in Budapest depends very much from the location. While central districts, such as the 5th, 6th and the inner parts of the 13th and the 7th, 8th, 9th districts on the Pest side and the 2nd, 11th, 12th districts in the Buda side are the best areas to invest in, this info is far from being enough to make your choice.
The period of the unlimited possibilities, when you could have bought anything and sell it with a 20-30% profit in 2-3 years is over, so it's the time for wise decisions which will still make very good deals possible. The real bargains are still open, the market has changed a lot, you can find new residential buildings in every 2nd corner, but there is still a shortage in some segments, which will make some flat- and house types as well as some areas appreciate in the near future.
Two parts of the same street can be quite different, one building is better then the other, 1st floor is high enough in some houses but might be too low in others and so on. You can count on our experience to find the best investment opportunities for you.
Since we have been the leading real estate agency on the rental market for 15 years in Budapest, our experience and knowledge makes it possible to offer you only the best investment properties: the easily rentable ones providing the highest yields.