Authored by the expert who managed and guided the team behind the Hungary Property Pack
Yes, the analysis of Budapest's property market is included in our pack
Everything in this article is based on publicly available data and transparent methodology, which we detail at the end of the page.
We constantly update this blog post to keep numbers fresh and relevant for investors looking at the Budapest rental market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Budapest.
Insights
- Budapest gross rental yields sit around 4.5% in early 2026, but savvy investors in Districts VIII and IX can still find properties delivering 5.5% to 6.5% when purchased carefully.
- About 93% of Budapest rental listings are apartments, which means the citywide yield average essentially reflects apartment market performance rather than houses or villas.
- Panel apartments in Budapest often outperform brick buildings on yield, typically reaching 5% to 6.5% gross, though building quality and heating costs matter enormously.
- The gap between Budapest's highest and lowest yield neighborhoods spans roughly 3% to 7% gross, with prestige areas like District II and District V compressing yields the most.
- Property management in Budapest typically costs around 8% of monthly rent plus VAT, with a one-month leasing fee on top, which can shave over 1% off your net yield annually.
- Budapest's price-to-rent ratio has risen steadily into 2025, signaling that property prices have outpaced rents and compressed yields compared to five years ago.
- A realistic vacancy buffer for Budapest landlords in 2026 is about 5%, which translates to roughly 18 days of lost rent per year on average.
- Units between 25 and 45 square meters tend to deliver the best yield per square meter in Budapest, as rent per square meter drops significantly above 70 square meters.
- Districts XI, XIII, and IX have some of the lowest vacancy rates in Budapest thanks to strong demand from young professionals and good public transport connections.
- Hungary does not have a single nationwide annual property tax, so recurring costs for Budapest landlords depend heavily on district-level municipal fees and condo common charges.
What are the rental yields in Budapest as of 2026?
What's the average gross rental yield in Budapest as of 2026?
As of early 2026, the average gross rental yield in Budapest across all residential property types sits around 4.5%.
Most typical residential properties in Budapest fall within a gross yield range of roughly 3.5% to 6%, depending on location, property condition, and unit size.
Compared to other Central European capitals, Budapest's average gross yield is competitive but has compressed over recent years as property prices rose faster than rents.
The single biggest factor influencing Budapest gross rental yields right now is the gap between elevated purchase prices (especially for new builds) and more moderate rent growth, which naturally pushes yields down in premium areas.
What's the average net rental yield in Budapest as of 2026?
As of early 2026, the average net rental yield in Budapest across all residential property types is approximately 3.2%.
The typical difference between gross and net yields in Budapest runs between 1% and 1.5 percentage points, meaning costs eat up roughly a quarter to a third of your gross return.
Property management and leasing fees represent the single largest recurring expense that reduces gross yield to net yield in Budapest, especially for foreign or hands-off landlords who outsource tenant management.
Most standard investment properties in Budapest deliver net yields in the range of 2.5% to 4.5%, with the lower end representing prime central locations and the higher end achievable in improving outer districts with careful property selection.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Budapest.
We made this infographic to show you how property prices in Hungary compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What yield is considered "good" in Budapest in 2026?
A gross rental yield of 5.5% or higher is generally considered "good" by local investors in Budapest, while a net yield above 4% puts you in strong territory.
The threshold that separates average-performing properties from high-performing ones in Budapest typically falls around 5.5% to 6% gross, because achieving this level means you have found a property where the rent-to-price ratio has not yet been compressed by prestige pricing or new-build premiums.
How much do yields vary by neighborhood in Budapest as of 2026?
As of early 2026, the spread in gross rental yields between Budapest's highest-yield and lowest-yield neighborhoods ranges from roughly 3% to 7%.
Neighborhoods that typically deliver the highest rental yields in Budapest include improving areas like District VIII (Józsefváros, especially Corvin-negyed), parts of District IX (Ferencváros around Mester utca), and sections of District XIII (Angyalföld) where purchase prices have not fully caught up with solid renter demand.
The lowest rental yields in Budapest are found in prestige zones like District I (Castle District), District II (Rózsadomb and Pasarét), District V (Belváros-Lipótváros), and District XII (Hegyvidék), where high purchase prices compress returns despite strong tenant quality.
The main reason yields vary so dramatically across Budapest neighborhoods is that purchase prices in central and prestigious areas have run far ahead of achievable rents, while "improving but not yet repriced" districts still offer better rent-to-price ratios.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Budapest.
How much do yields vary by property type in Budapest as of 2026?
As of early 2026, gross rental yields across different property types in Budapest range from about 3% for prime renovated historic apartments up to 6.5% for well-located panel apartments.
Panel apartments in Budapest currently deliver the highest average gross rental yield, often reaching 5% to 6.5%, because their lower purchase prices create a more favorable rent-to-price ratio.
Prime renovated apartments in historic central districts deliver the lowest average gross rental yield in Budapest, typically between 3% and 4.5%, as buyers pay a premium for location and aesthetic appeal that rents cannot fully offset.
The key reason yields differ between property types in Budapest is that purchase prices vary dramatically (new builds cost 1.5 to 1.7 million HUF per square meter versus 1.2 to 1.4 million for used apartments), while monthly rents do not increase proportionally.
By the way, you might want to read the following:
What's the typical vacancy rate in Budapest as of 2026?
As of early 2026, the typical residential vacancy rate in Budapest for long-term rentals is around 5%, which translates to roughly 18 days of lost rent per year.
Vacancy rates across Budapest neighborhoods range from near zero in high-demand areas with well-priced units to 8% or more for overpriced or poorly renovated properties in less liquid locations.
The main factor driving vacancy rates in Budapest is property quality and pricing accuracy, because the city's diverse tenant pool (students, young professionals, expats) ensures demand exists, but renters are selective about heating costs, renovation standards, and value for money.
Compared to other European capitals, Budapest's vacancy rate is relatively healthy, reflecting a market where tenant demand remains solid but landlords must compete on quality and price.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Budapest.
What's the rent-to-price ratio in Budapest as of 2026?
As of early 2026, the average rent-to-price ratio in Budapest is approximately 4.5%, which is mathematically equivalent to the gross rental yield.
A rent-to-price ratio above 5% is generally considered favorable for buy-to-let investors in Budapest, and this figure directly equals the gross rental yield since both measure annual rent divided by purchase price.
Budapest's rent-to-price ratio is comparable to other Central European capitals but has compressed over recent years, as Hungary's price-to-rent ratio rose steadily into 2025, meaning property prices outpaced rent growth.
We have made this infographic to give you a quick and clear snapshot of the property market in Hungary. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods and micro-areas in Budapest give the best yields as of 2026?
Where are the highest-yield areas in Budapest as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Budapest are District VIII (Józsefváros, especially Corvin-negyed and parts of Palotanegyed), District IX (Ferencváros around Mester utca and Ráday utca), and parts of District XIII (Angyalföld near Váci út).
In these top-performing areas like Corvin-negyed in District VIII and inner Ferencváros in District IX, investors can achieve gross rental yields in the range of 5.5% to 7% when properties are purchased carefully.
The main characteristic these high-yield Budapest neighborhoods share is that purchase prices remain lower than in the most prestigious central districts, while renter demand stays strong thanks to proximity to universities, offices, and excellent public transport.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Budapest.
Where are the lowest-yield areas in Budapest as of 2026?
As of early 2026, the top three lowest-yield neighborhoods in Budapest are District V (Belváros-Lipótváros), District I (Castle District), and District II (Rózsadomb and Pasarét).
In these low-yield areas like Rózsadomb in District II and the Castle District in District I, gross rental yields typically range from just 3% to 4.5%.
The main reason yields are compressed in these Budapest neighborhoods is that purchase prices carry significant prestige premiums, while long-term rents cannot rise enough to compensate because tenants have alternatives in nearby, more affordable districts.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Budapest.
Which areas have the lowest vacancy in Budapest as of 2026?
As of early 2026, the top three neighborhoods with the lowest residential vacancy rates in Budapest are District XI (Újbuda), District XIII (Újlipótváros and Angyalföld), and District IX (Ferencváros).
In these low-vacancy areas like Újbuda and Újlipótváros, vacancy rates can run as low as 2% to 4%, meaning well-priced units often find tenants within days.
The main demand driver keeping vacancy low in these Budapest neighborhoods is their combination of good public transport connections, proximity to major office corridors, and appeal to young professionals who form the largest renter demographic.
The trade-off investors typically face when targeting these low-vacancy areas is that purchase prices are often higher than in emerging districts, which means you gain occupancy stability but sacrifice some yield potential.
Which areas have the most renter demand in Budapest right now?
The top three neighborhoods currently experiencing the strongest renter demand in Budapest are District XIII along the Váci út corridor, District XI (Újbuda), and District IX (Ferencváros).
The renter profile driving most of the demand in these areas consists of young professionals aged 25 to 40 who work in nearby office districts and prioritize short commutes, modern amenities, and good public transport access.
In these high-demand Budapest neighborhoods, well-priced and well-presented rental listings typically get filled within one to two weeks, and sometimes within just a few days for particularly attractive units.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Budapest.
Which upcoming projects could boost rents and rental yields in Budapest as of 2026?
As of early 2026, the top three upcoming infrastructure or development projects expected to boost rents in Budapest are the continued expansion of the BudaPart development at Kopaszi-gát, office corridor growth along Váci út near Göncz Árpád-városközpont, and large-scale brownfield residential projects currently in planning stages.
The neighborhoods most likely to benefit from these projects include District XI around BudaPart (where residential and office critical mass keeps growing), District XIII along the Váci út axis (where office concentration supports professional tenant demand), and emerging zones where new housing supply is being announced.
Once these projects are completed, investors might realistically expect rent increases of 5% to 15% in immediately adjacent micro-areas, though the impact depends heavily on how much new supply enters the market simultaneously.
You'll find our latest property market analysis about Budapest here.
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What property type should I buy for renting in Budapest as of 2026?
Between studios and larger units in Budapest, which performs best in 2026?
As of early 2026, studios and one-bedroom units in Budapest outperform larger units in terms of both rental yield and occupancy rates.
Studios in good Budapest locations typically achieve gross rental yields of 5% to 6.5% (around 150,000 to 200,000 HUF monthly rent, or roughly 380 to 510 EUR / 400 to 540 USD), while larger two-bedroom or three-bedroom units often yield 4% to 5% despite higher absolute rents.
The main factor explaining why smaller units outperform in Budapest is that rent per square meter is significantly higher for compact apartments, and the broad tenant pool (singles, couples, students, young professionals) ensures faster leasing and lower vacancy.
One scenario where a larger unit might actually be the better investment in Budapest is when targeting long-stay family tenants in districts like XI or XIII, as these renters typically stay for years and generate very stable income despite the lower yield percentage.
What property types are in most demand in Budapest as of 2026?
As of early 2026, the most in-demand property type in Budapest is the renovated one-bedroom or two-bedroom apartment in a well-connected location with reasonable heating costs.
The top three property types ranked by current tenant demand in Budapest are renovated one-bedroom apartments near transit, energy-efficient two-bedroom flats for couples or small families, and modern studios for young professionals and students.
The primary demographic trend driving this demand pattern is the dominance of young professionals and mobile workers aged 25 to 40 who prioritize location, commute time, and monthly running costs over sheer living space.
One property type currently underperforming in demand in Budapest is the large family house in outer districts, as the tenant pool is narrow, heating costs are high, and most renters prefer the convenience of apartment living closer to the city center.
What unit size has the best yield per m² in Budapest as of 2026?
As of early 2026, units between 25 and 45 square meters deliver the best gross rental yield per square meter in Budapest.
For this optimal unit size in Budapest, gross rental yield per square meter typically ranges from 5% to 6.5% (approximately 4,500 to 6,000 HUF per square meter monthly, or roughly 11 to 15 EUR / 12 to 16 USD per square meter).
The main reason smaller units under 25 square meters or larger units above 70 square meters tend to have lower yield per square meter in Budapest is that very small units face tenant skepticism about livability, while larger units see rent per square meter drop significantly because total monthly rent reaches affordability ceilings.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Budapest.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Hungary versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What costs cut my net yield in Budapest as of 2026?
What are typical property taxes and recurring local fees in Budapest as of 2026?
As of early 2026, there is no single nationwide annual property tax in Hungary, so the annual property tax amount for a typical Budapest rental apartment depends on district-level municipal decisions and can range from zero to roughly 50,000 to 150,000 HUF per year (approximately 125 to 380 EUR / 130 to 400 USD) in districts that levy building taxes.
Other recurring local fees Budapest landlords must budget for include condo common charges (közös költség), which typically run 15,000 to 40,000 HUF monthly (roughly 38 to 100 EUR / 40 to 105 USD), plus building insurance contributions and occasional special assessments for major repairs.
These taxes and fees typically represent 5% to 15% of gross rental income in Budapest, with common charges being the largest recurring line item for most apartment investors.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Budapest.
What insurance, maintenance, and annual repair costs should landlords budget in Budapest right now?
Annual landlord insurance for a typical Budapest rental apartment costs approximately 30,000 to 60,000 HUF per year (roughly 75 to 150 EUR / 80 to 160 USD), depending on coverage level and property value.
The recommended annual maintenance and repair budget for Budapest rental properties is 0.5% to 1% of property value, which translates to roughly 250,000 to 600,000 HUF per year (approximately 630 to 1,500 EUR / 670 to 1,600 USD) for a typical investment apartment.
The type of repair expense that most commonly catches Budapest landlords off guard is water damage from aging plumbing or poorly maintained building infrastructure, which is a classic problem in older apartment blocks across the city.
In total, landlords should realistically budget 300,000 to 700,000 HUF annually (roughly 760 to 1,800 EUR / 800 to 1,900 USD) for the combined cost of insurance, routine maintenance, and unexpected repairs.
Which utilities do landlords typically pay, and what do they cost in Budapest right now?
In a typical Budapest long-term rental setup, tenants pay most utilities directly (electricity, gas, water, internet), while landlords usually cover or share building-level common charges that may include some heating or water components depending on building configuration.
For the portion of utilities that landlords typically cover (primarily common charges with utility components), the monthly cost ranges from 15,000 to 40,000 HUF (roughly 38 to 100 EUR / 40 to 105 USD), though this varies significantly by building age, heating system, and district.
What does full-service property management cost, including leasing, in Budapest as of 2026?
As of early 2026, full-service property management in Budapest typically costs around 8% of monthly rent plus VAT, which works out to roughly 20,000 to 30,000 HUF per month (approximately 50 to 75 EUR / 55 to 80 USD) for a typical rental apartment.
On top of ongoing management, the typical leasing or tenant-placement fee in Budapest is one month's rent, which means roughly 250,000 to 300,000 HUF (approximately 630 to 760 EUR / 670 to 800 USD) each time you need to find a new tenant.
What's a realistic vacancy buffer in Budapest as of 2026?
As of early 2026, landlords in Budapest should set aside approximately 5% of annual rental income as a vacancy buffer, which provides a reasonable cushion for tenant turnover, cleaning, and minor repairs between tenancies.
This 5% buffer translates to roughly 2.5 to 3 weeks of vacancy per year, which aligns with typical Budapest leasing timelines for well-priced properties in liquid neighborhoods.
Buying real estate in Budapest can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Budapest, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Hungarian Central Statistical Office (KSH) - Rent Index November 2025 | It's Hungary's official statistics office, and this index is published directly by KSH. | We used it to anchor rent growth and market direction right before January 2026. We treated it as the most official signal of where advertised rents were heading. |
| KSH - Rent Index September 2025 (Composition Data) | It's a KSH publication with transparent notes about what's in the dataset. | We used it to understand what property types dominate Budapest rental listings (mostly flats). We used that to weight our yield estimates toward apartments rather than houses. |
| KSH - Housing Prices Index Q1 2025 | It's an official KSH release based on processed transaction data. | We used it to cross-check price levels for Budapest new-build homes and price direction. We used those levels as an upper anchor when triangulating typical purchase prices. |
| KSH - Ingatlanadattár (Property Data Repository) | It's KSH's official property data hub with very granular price breakdowns. | We used it as the truth source for how transaction prices differ dramatically by area and type. We used it to support our neighborhood-variation discussion. |
| Hungarian National Bank (MNB) - Housing Market Report May 2025 | It's the central bank's flagship housing report, built from large datasets and market monitoring. | We used it to anchor Budapest price momentum and new-build pricing per square meter. We used those numbers to bracket likely purchase prices for early 2026. |
| MNB - House Price Index Statistical Release | It's the central bank's official time series for house price movements including Budapest. | We used it to validate that Budapest prices were still growing strongly into 2025. We used it as a trend check so our January 2026 yields reflect expensive assets with lagging rents. |
| Eurostat - House Price Index Euro Indicators | Eurostat is the EU's official statistics office, and HPI is a standardized indicator. | We used it to benchmark the EU-wide house price environment against Hungary's. We used it to support why good yields in Budapest must be judged in a high-price European context. |
| OECD - Housing Prices Indicators | The OECD provides standardized cross-country indicators used by policymakers and researchers. | We used it as the conceptual and definitional anchor for price-to-rent ratio. We used it to align our rent-to-price discussion with global standards. |
| Trading Economics - Hungary Price-to-Rent Ratio | It clearly attributes the series to the OECD and presents the time series accessibly. | We used it as a quick cross-check on Hungary's price-to-rent ratio direction into 2025. We used it to support the idea that prices have outpaced rents, compressing yields. |
| RE/MAX Hungary - Housing Market Report Q1 2025 | RE/MAX is a major brokerage, and this report cites MNB trends and transaction experience. | We used it to anchor used brick apartment price-per-square-meter levels in Budapest. We used it to build a realistic blended purchase-price estimate for early 2026. |
| Duna House - Barometer Hub | Duna House is one of Hungary's best-known real estate brokerages and publishes regular market commentary. | We used it to cross-check market temperature and the narrative around demand and supply. We used it as a private-sector triangulation point alongside KSH and MNB. |
| Telex - Budapest Average Rent Datapoint | It's a major national outlet and clearly attributes the rent figure to a named dataset provider. | We used it as a concrete HUF-per-month reality check to complement KSH's index. We used it to calibrate our January 2026 typical rent assumptions. |
| Budapest Property Management (Bpartner) | It's a Budapest-focused letting and management firm that publishes an explicit fee structure. | We used it to ground property management costs in a real local price list. We used it to build the net-yield cost stack including management and VAT-style pricing. |
| Homever - Budapest Property Management | It's a Budapest property management and leasing provider that publishes a clear one-month leasing fee. | We used it to validate that one month's rent as a leasing fee is normal locally. We used it to model tenant-turnover costs in net yield and vacancy buffer assumptions. |
| Act C of 1990 on Local Taxes (Official Law Text) | It's an official Hungarian legal repository for the actual tax law. | We used it to frame what municipalities can tax and why recurring property taxes vary by district. We used it to keep the property tax discussion accurate and not exaggerated. |
| MEKH - Hungarian Energy and Public Utility Regulatory Authority | It's the national regulator that oversees energy and public utility frameworks. | We used it as the authority reference for why utility pricing is regulated and changes via official decisions. We used it to support our utilities section without relying on anecdotal sources. |
| Fővárosi Vízművek - Residential Water Fee Calculator | It's the official Budapest-area water utility site used for customer billing estimates. | We used it to sanity-check the scale of water costs for typical apartments. We used it to keep utility budgeting realistic. |
| FCSM - Budapest Sewer Utility Tariff Information | It's the official sewer utility site showing tariffs and billing structure. | We used it to confirm the sewer side exists as a separate billed component in the Budapest area. We used it to avoid underestimating water plus sewer in total utility costs. |
| Ingatlan.com - Budapest Listings | It's Hungary's largest property portal with comprehensive listing data across Budapest. | We used it to cross-reference listing concentrations by neighborhood. We used it to validate demand patterns and identify where rental activity clusters. |
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