Tenants are driven by optimism in the Hungarian market

Inner districts of Buda and Pest have seen a more than 20 percent increase in rental fees compared to the first half of 2014. According to experts tenants are driven by the same optimism than real estate buyers. More and more people are moving away from their parents or try their luck in the capital. Meanwhile the prices in Sopron are almost as high as in Budapest.

Those who want to rent an apartment in the capital should start looking only when they already have the deposit and first month's rent in their pocket. And they should expect pretty high prices – even 240 thousand forints per year higher for a 50 m2 apartment.

In the first half of last year price per m2 was below two thousand forint almost in every district – now it is higher than that almost everywhere.

In the Eastern parts of the country prices have not changed this radically, but the West is already catching up to Budapest. Larger investments in the area had a positive effect on the labor market here, and Győr-Moson-Sopron county is also popular among Hungarians who commute to Austria.

According to Déry Attila it is mainly optimism which drives the increasing prices in the West. People are generally more optimistic about their jobs, their future, so they are more likely to invest in houses, flats or rentals.

For example, they are more likely to move to Budapest as they believe they will be able to pay the rent on the long run.

Panels are popular too, especially in the countryside, where rent rose to 1200 Ft/m2, which is a 10-15 percent increase compared to last year. Also, more and more homeowners try short-term renting in areas frequented by tourist – a typical example for this is the area located between Astoria and Blaha Lujza tér in Budapest.

However this trend itself would not be enough to cause the boom that we can see on the market. But finding the reasons is not easy, as most owners still rent their flats illegally.

(Source: http://www.vg.hu/vallalatok/ingatlan/optimizmus-hajtja-az-alberloket-is-453789)