For a few months you can get an even cheaper rental, then the prices start. Moreover, there were already signs of recovery at the end of last year, and the emergence of vaccines and the spread of vaccination, as well as the expected rise in tourism as a result, could strengthen this process. The Airbnb market is also expected to emerge.
In the first half of the year, tenants may still have a place in the rental market, but from the summer months rents may start to rise again and even accelerate in parallel with the rise of coronavirus vaccination and the start of tourism, according to Rentingo.com rental market forecast. While demand prices remain low, the rental market has picked up somewhat in December, and one of the first signs of healthier operations and longer-term price increases may be the fact that new advertisements are no longer asking for a one-month but two-month deposit. landlords.
In the first months of this year, the Budapest rental market will continue to be affected by the economic effects of the coronavirus. Rentingo.com based on its forecast of rental market trends: the recovery from the pandemic will bring drastic changes, as the associated complex economic effects affect both the demand and supply sides. As a result, the market may turn from the beginning of summer, prices may rise and the correction may start towards the pre-epidemic level.
According to Rentingo.com’s community apartment search forecast, the number of newly handed over apartments will continue to rise until the summer, but as a result, apartment prices will not fall further. This is because expansion is expected in a market segment in which rents are typically advertised above average by landlords.
Step by step, we return to our habit
However, a positive correction is expected from the beginning of the summer, and one of the main catalysts for the price increase may be tourism revived as a result of vaccination. If there are no rules that make short-term spending impossible or difficult, thousands of apartments could return to Airbnb mode, thus raising the prices of long-term rentals in the capital, as seen earlier. Also contributing to the rise will be the fact that demand-side conditions are also expected to improve with the lifting of restrictive measures and the growing number of virus protectors. As a result, job opportunities are once again expanding in the dormant sectors of the economy, and rising incomes are boosting solvent demand. The rise in the rental market price may be further supported by the fact that university life is expected to resume in the usual way in the autumn, so that rural and foreign students will also strengthen the demand.
The first sign of the impending turn of the trend may be that 90 per cent of landlords applied for a two-month deposit last December, similar to the last one before the virus appeared in early 2020, after which more and more people applied for only one-month bail due to weakening demand. According to data from Rentingo.com in December, the price level of demand is still at a low point, however, landlords will not further reduce the advertised rents. Rather, more and more people are adapting to current market conditions by being able to pay the second month’s deposit in installments and are also able to bargain: they typically rent out the apartment at about 10 percent cheaper than the advertised prices.
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