Neighborhood Price Index Reveals Expensive Budapest Rents

  • 31 Jan 2019 10:01 AM
  • Budapest Business Journal
Neighborhood Price Index Reveals Expensive Budapest Rents
According to the Neighborhood Price Index 2019 by Nestpick, a worldwide aggregator website for furnished apartments, a monthly salary as high as nearly EUR 1,720 (approx. HUF 545,000) may be needed in order to comfortably afford a single-person apartment in Budapest.

By Nestpickʼs calculations, in order to be able to afford an approximately 50 square-meter single-person apartment in Budapestʼs Districts 11 and 12, a monthly salary of EUR 1,718.75 is required, at a rent/sqm ratio of EUR 10.31.

In the same two districts, a family needs to earn some EUR 4,296.88 per month to afford a large family apartment (of about 105 sqm) at current rent prices (EUR 12.28/sqm for such apartments).

Living in these two districts will eat up just over 60% of disposable income at the given salary rates, the report notes.

The cheapest of the surveyed regions in Budapest are Districts 18 and 23. Here, to comfortably afford a single-person apartment means needing to earn a monthly wage of EUR 1,369.79, at a rent/sqm ratio of EUR 8.22.

For families, the required monthly income is EUR 2,578.42, at a rent/sqm ratio of EUR 7.37 per sqm. With these salaries, monthly rent takes up 47.87% of disposable income.

The Neighborhood Price Indexʼs most expensive districts around the globe include parts of London, Monaco, San Francisco, and Hong Kong.

The research defines a single-person apartment as one with an area of 50 sqm (+/-10 sqm), and a family apartment as one of 105 sqm (+/- 15 sqm). The index uses the definition of the United States statistical department to denote affordability.

To calculate the required monthly salary, the study multiplied rent/sqm by the average apartment size in the given city, and then multiplied the result by 10/3.

The full study can be found here.

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Budapest Business Journal

Hungary's largest and oldest source of business and financial news in English. Since 1992 it has presented essential information on Hungarian business life, including international analyses about the country. These days the BBJ newspaper is published every other week, while it releases daily business news online including premium paid content.

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