Where local regulations allow (e.g., in downtown zones), short-term rentals offer highly competitive returns compared to Western Europe.
Property Price Growth in Budapest (2024):
Average annual growth: approx. 6–8%
Inner districts (e.g., Districts V, VI, VII, IX): often over 10%
Outer/suburban districts (e.g., XVII, XXIII): approx. 3–5%
Growth drivers:
Real estate as a hedge against inflation
Returning foreign investors
Improving tourism outlook
Airbnb Yields in Budapest (2024):
Gross annual return: approx. 6–10%
Net return (after tax and operating costs): approx. 4–6%
Top-performing districts:
District VII (Erzsébetváros) – tourist hotspot
District V (Belváros-Lipótváros)
District VI (Terézváros)
Key considerations:
District-level regulations (e.g., night limits)
Volume of tourism (significantly increased since 2020–2022)
An 50 m² downtown apartment rented out 5 nights/week at €60–80 per night:
Gross annual income: approx. €15,000–20,000
Net income: approx. €8,000–12,000 after operating costs and taxes
🔹 Property Details:
Apartment: 50 m², renovated, located in District VII (Airbnb-friendly zone)
Purchase price: €180,000 (approx. HUF 72 million)
Furnishing & setup: €10,000 (furniture, equipment, photography, marketing)
Total investment: €190,000
🔹 Airbnb Operation:
Avg. daily rental rate: €75/night
Occupancy rate: 70% (approx. 255 nights/year)
Gross annual income: €75 × 255 = €19,125
🔹 Annual Costs:
Management fee (20%): ~€3,825
Utilities, HOA, insurance: ~€1,800
Maintenance, cleaning, misc.: ~€1,200
Taxes (as a foreign investor under Hungarian law): ~€1,500–2,000
Net annual income: approx. €10,300–11,000
Net annual yield: approx. 5.5–6%
Payback period: approx. 16–18 years
Plus:
Property value may increase by 5–8% annually
Income generated in euros – important for Western investors
Dual return potential: rental income + capital appreciation
Low Entry Prices: Much lower than in Western European cities
Stable Tourism: Budapest is once again a year-round international destination
Higher Returns: Significantly higher yields than Berlin or Vienna
Strong Rental Market: Reliable demand for both short- and long-term rentals
Low Political Risk: EU member, stable legal and economic framework
No Currency Risk if Income is in Euros: Many guests pay in EUR (e.g., via Booking)
(This has been the trend in recent years.)
➤ Advantage:
Lower purchase price in EUR/USD
Example:
1 EUR = 370 HUF → HUF 74M apartment = €200,000
1 EUR = 400 HUF → same apartment = €185,000
If return is calculated in EUR/USD, weakened HUF increases effective return
➤ Risk:
Rental income generated in HUF (unless converted automatically)
Weaker HUF = lower EUR/USD return when transferring abroad
(Rarer, but did occur between 2011–2015.)
➤ Advantage:
HUF income is worth more in EUR terms
Example: HUF 1M/month Airbnb income
At 1 EUR = 360 HUF → ~€2,700
At 1 EUR = 340 HUF → ~€2,940 → +9% gain from exchange rate alone
➤ Risk:
If purchasing now, the apartment is more expensive in EUR
Later weakening of HUF may reduce the EUR value of the asset
Timing the Purchase: Buy when HUF is weak – lower EUR cost
Currency Selection: Collect rental income in EUR via platforms (e.g., Booking, Airbnb)
Dual Currency Strategy:
Buy in HUF
Record and repatriate profits in EUR/USD
Exploit currency arbitrage
Combined Capital Gain: Property value rises in HUF and may also increase in EUR if HUF weakens
Time your purchase wisely
Think in multiple currencies, not just in HUF
Understand Hungarian tax and currency rules
Use platform-based rentals instead of traditional long-term leases