The onslaught for apartments for rent in university towns could start, as you only have to wait a tight 1 week to announce the 2021 admission point limits. According to the latest data of Felvi.hu, a large number of those wishing to study further applied to the country’s higher education institutions this year as well, and the experience of recent years shows that the best properties find a tenant or a new owner in a flash. Therefore, for those who have not yet taken the necessary steps, it is better to look closely at the market now. Experts from OTP Real Estate have mapped the offer of apartments and real estate in the larger university cities.
This year, the announcement of the admission point limits of higher education institutions is due on July 22. According to the data of FELVI.hu, more than a hundred thousand prospective students are waiting for the big day sitting on needles this year. After the traditional summer seasonal slowdown, this is when the onslaught of the best rental apartments and rental options starts, but there is still a lot of uncertainty due to the pandemic. The real estate market is showing a mixed picture, demand is already picking up somewhere, while elsewhere there is still a wait-and-see attitude among rental apartments.
“The real estate market and landlords are always looking forward to the announcement of higher education scores, this year this is especially true because after last year’s big fall this year, despite the slowly rising trend, the impact of the epidemic on rents is still being felt. Gradual opening up, however, is a source of confidence, and if distance learning is to be replaced again by attendance at institutions, it is likely to have an impact on the market. For parents who, in addition to providing housing for their child during university studies, are also thinking about investing in real estate, buying an apartment close to the university can still be an excellent solution instead of renting an apartment, ”said Dávid Valkó, senior analyst at OTP Ingatlanpont.
A XI. district housing market has already picked up
Traditionally the capital VIII., IX. and XI. districts – the area around the campuses of ELTE, BME, Semmelweis University and the Corvinus University of Budapest – are the most popular among university students. Last year, according to the figures published in the OTP Residential Real Estate Value Map, which processes NAV data, which is not yet complete, the increase in real estate prices in these districts was much more moderate but clear, between 2-8 percent compared to previous years. In 2020, the VIII. district 626 thousand, in the IX. district 694 thousand, in the XI. The average price per square meter was 773 thousand forints in the 8th district, but it is important to mention that the VIII. in more frequented parts of the district, such as in the Palace District or near the Corvin Quarter those interested could find prices much higher than average.
“There will be no significant recovery in the rental market in university districts this year, exception to Annex XI. district, where the number of home sales around universities has jumped significantly in the last few months. At the same time, the apartments in the district have become more valuable, which is also reflected in the prices. The brand new apartments will be sold out in the university districts in as little as a few days. We can also see a changing trend in the size of residential real estate: two university students who used to like to move into a one-room apartment, or in a tenant-sub-tenant relationship, with the spread of distance learning, the demand for 1.5-2 room properties is now higher, where students can listen to their lectures in two rooms ” – said Csaba Laczi, regional manager of OTP Ingatlanpont in Budapest, said his market experience.
Rural university towns show a mixed picture: there is a strong demand, elsewhere the real estate market is still waiting
In Székesfehérvár the market is reviving, the students of Győr are much more picky
The north-western region of the country is rich in famous universities: the University of Óbuda in Székesfehérvár, the multidisciplinary training of the University of Kodolányi, the outsourced campus of the Corvinus University of Budapest, which also provides several specializations, and the Széchenyi István University in Győr. Last year, Székesfehérvár was the second most expensive county seat with an average price of 424 thousand forints per square meter, but Győr also performed in an upscale place; here, an average of 411 thousand forints cost a square meter of residential real estate.
“While a property in Székesfehérvár can be found extremely quickly, home-seekers in Győr prefer to choose. In Győr, university students are mainly interested in second-hand flats; they are less likely to look for newly built properties that are typically smaller in size and more expensive. While a newly built studio apartment can reach 35 million forints, the value of a larger, used panel is around 26 million forints. In contrast, it is difficult for buyers to catch a vacant plot of land in Székesfehérvár, but there is still no significant change in demand and prices in the rental market, ”said Szabolcs Goreczki, Regional Manager of OTP Ingatlanpont in North-West Hungary.
The real estate markets of Miskolc, Eger and Debrecen have not yet been seized
Debrecen – which is also rich in many newly built projects and local job opportunities – was the most expensive county seat in 2020 with an average price of HUF 429 thousand per square meter, Mouse (330 thousand HUF / m2) and Miskolc (237 thousand HUF / m2) average prices were much lower in the ranking.
Sándor Farsang, regional manager of OTP Ingatlanpont in north-east Hungary, says of the region’s market: “The usual wave of purchases in connection with university admissions has not yet reached these cities, chances are that buyers will decide at the last minute depending on how the autumn trainings develop. However, once the scores have been announced, this part of the housing market can easily be launched. ”
Down south: Szeged and Pécs
In Szeged for the time being, it is difficult to find a good apartment, multi-room properties for rent are becoming more and more popular in Pécs
In 2020, a property sold at an average price of HUF 353 thousand per square meter in the county seat of the Great Plain, which houses the University of Szeged.
“Several factors are now influencing the real estate market: the demand side in Szeged is developing similarly as in previous years – apart from last year. There is a stable circle of interested people who want to settle down for their university years in a 1-2-room apartment in a frequented location, but the current narrow supply side limits their possibilities. Many people are looking for real estate for investment purposes, but these types of flats are extremely overpriced, so it is not worth investing in, and this also affects the housing situation of university students, ”said Szilvia Piros, OTP Real Estate Regional Manager for the Southern Great Plain.
A Pécs University is the oldest and one of the largest higher education institutions in the country. In 2020, the city finished in the price ranking of the county seats towards the end of the middle field, a residential property cost an average of 310 thousand forints per square meter here.
“The real estate market in Pécs is full of buyers with investment intentions, real estate with 2 or more rooms is becoming more and more popular, which can be rented out to several students. They are typically interested in flats of this size in the catchment area of the university faculties at a price between HUF 20-22 million, ”summed Ildikó Markó, the South Transdanubia regional manager of OTP Ingatlanpont.
Source: Ingatlanhírek by ingatlanhirek.hu.
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