Hot tip: if you want an entry-level investment in Hungarian real estate, garages are your best bet, at least according to experts in Hungarian real estate.
László Balogh, a lead analyst at Hungary’s largest online real estate firm, ingatlan.com, told Origo news portal that demand for parking spaces and garages has increased in the Hungarian capital in the past few years for two simple reasons. One factor is the growing number of families moving to another district within the capital and the other is simply the growing number of cars.
Balogh said that the average monthly rental price for a parking space or garage has increased by 16 percent in the past twelve months to HUF 22,500 (€68) while the price of a garage rose 21 percent to HUF 4.6 million (€14,000). At the same time, demand in regional cities is almost as strong.
He said that garages are a good investment for a number of reasons. First, their gross return is around six percent a year, slightly above that of a rental apartment. Second, they are significantly cheaper to buy and require little to no upkeep.
On the other hand, good luck finding a garage for sale in the Hungarian capital. In the downtown 5th district, there was a single garage being sold in October, at a price of HUF 17 million (€51,000) or four times the Budapest average.
Title image: Garage door, illustration (source: atekapud.hu)