I recently had the pleasure to catch up with Benedek, my buyer’s agent and renovations manager in Budapest. He’s been helping a few of my clients invest in real estate in Budapest, both on Airbnb and in the long term rental market.
Budapest real estate was hit hard by the whole Situation in the past 2 years. It’s a city that had booming tourism, and hence an extremely vibrant Airbnb market. When the Situation hit, the long term rental market was flooded with former Airbnbs thus depressing yields. Property prices in downtown Budapest took a dive.
The market is now experiencing a rebound which started just a few weeks ago. Transaction volumes are up, as well as yields due to tourism booming again and hundreds of thousands of Ukrainians moving to Hungary. Not all are poor. I currently have Ukrainian IT consultants staying in one of my apartments, and they earn significantly more than your average Western European.
The Hungarian Forint (HUF) dropped more than the Euro, which makes Budapest real estate attractively priced in terms of absolute value compared to other EU capitals.
Benedek and I discussed the current situation, and visited one of the apartments he found and renovated for one of his clients. He then shared the actual, net rental yields.
00:40 Budapest real estate market update May 2022
02:00 Changes in the rental market in Budapest – impact of Ukrainian refugees in Budapest
2:30 Airbnb market in Budapest
04:30 Investing in real estate in Buda, the other side of Budapest
06:30 Apartment visit
07:35 Exact rental yield calculation when you invest in an Airbnb in Budapest
11:20 Liquidity in Budapest
You can watch the video here.
Such an Airbnb investment in Budapest can qualify non-EU people for residency in Hungary, with full EU access
Yes, you read this correctly. You can obtain residency in Hungary for you and your family when you invest in real estate with such high rental yields on Airbnb. For this, get in touch with Laszlo. Details here.
To be fair, long term rental yields are more around the 3-5% gross yield range. It’s on Airbnb that you can sweat your assets. But long term rentals would also work for the Hungarian residency scheme.
To a World of Opportunities,
The Wandering Investor
Articles on Hungary:
- A Real Estate Investment in Budapest, Hungary?
- Price drops of 30% in downtown Budapest (June 2021)
- A cheap Plan B in rural Hungary
Available services in Hungary:
- A Real Estate Lawyer in Budapest, Hungary
- My favourite buyer’s agent in Budapest, Hungary
- Residency-by-Investment in Hungary for non-EU people