Gross rental yields acceptable in Budapest
Last Updated: Sept. 24, 2017 | |||||
BUDA - Apartments | COST (€) | YIELD (p.a.) | PRICE/SQ.M. (€) | ||
TO BUY | MONTHLY RENT | TO BUY | MONTHLY RENT | ||
90 sq. m. | 182,970 | 859 | 5.63% | 2,033 | 9.54 |
120 sq. m. | 263,160 | 1,258 | 5.73% | 2,193 | 10.48 |
PEST - Apartments | |||||
90 sq. m. | 222,930 | 959 | 5.16% | 2,477 | 10.66 |
120 sq. m. | 301,800 | 1,319 | 5.24% | 2,515 | 10.99 |
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower. Districts researched: Buda: Districts I, II, XI, and XII Pest: Districts V and VI Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule |
Gross rental yields, i.e., the gross return on investment in an apartment if fully rented out, are around 5.6% in Buda, while in Pest rental yields are a little lower, around 5.2%.
These are moderately good yields. The average prices per square metre (sq. m.) of apartments in Buda, the greener side of Budapest, range from EUR 2,000 to EUR 2,200, with higher prices in Pest, the business and commercial centre of Budapest. In Pest prices are around 2,500 per sq. m..
Smaller apartments tend to be cheaper (on a per square metre basis) both in Buda and in Pest.
Rents in Buda range from around EUR 9.50 to EUR 11.50 per month per sq. m., whereas in Pest, monthly rents per sq. m. range from around EUR 10.60 to EUR 11.00.
When buying property, take into consideration that round trip transaction costs are quite high in Hungary. See our Property transaction costs analysis in Hungary and Round-trip residential property transaction costs in Hungary, compared to the rest of Europe.
Hungary - More data and information
- How expensive are houses in Hungary, compared to the rest of Europe?
- Property prices in Hungary. Graph of house price trends in Hungary
- How much rent can be earned from Hungarian property, compared to the rest of Europe?
- How much tax must foreign owners pay when they rent out their Hungarian property?
- Where to by property in Hungary