In the first half of this year, tenants may still have a place in the rental market, but rents may start to rise rapidly again in the summer months, but we can expect an accelerating increase in parallel with the rise of coronavirus vaccination and the start of tourism, Rentingo.com 2021- and the capital’s housing market forecast.
While it is still a fact that the price level of demand is still at a low point, 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 that newly advertised landlords ask for a two-month deposit.
In the new year, the Budapest rental market will continue the economic effects of the coronavirus are influenced by Rentingo.com’s forecast of rental market trends: the recovery from the pandemic will bring about drastic changes similar to its outbreak, as the associated complex economic effects affect both the demand and supply sides. Together, they could turn the market from the beginning of summer, prices could rise and the correction could start towards pre-virus levels.
Supply expanding until the summer and prices unchanged, followed by price increases
According to Rentingo.com’s community apartment search forecast, the number of newly handed over apartments will increase continuously until the summer, but as a result rental 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. However, a positive correction is expected from the beginning of summer and one of the main catalysts for price increases due to vaccination reviving tourism may.
If there are no rules that make short-term spending impossible or difficult, thousands of flats can return to Airbnb mode (previously 7,500 flats in the capital were Air Bnb-ed.), Folded up like in the past, so long-term flats in the capital prices.
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.
At the end of 2020, we could already see the rental market recovering
The first sign of the upcoming trend turn may be that 90% of tenants applied for a two-month deposit last December, similar to the one that occurred in early 2020, before the virus appeared, and then due to weakening demand, more and more people applied for a one-month bail only. 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 they are also able to pay the second month’s deposit in installments and are also able to negotiate: typically the apartment is rented out roughly 10 percent cheaper than the advertised prices.
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