5000 Vacation Rentals in Budapest
Tourism has been gradually increasing in Budapest but it has been skyrocketing due to the hospitality exchange sites since 2010. In 2015 30-40 percent of the property sales were investment property purchases. It is no wonder that most of these investors made their new properties into vacation rentals or transformed their available long term rentals into these kinds of properties.
Big Boom
According to Airbnb reports last September tourists could choose from 5000 vacation rentals in Budapest. The occupancy rate of these apartments was 56.6 %, the average daily price was 50 USD. Consequently Budapest is the seventh cheapest city in Europe.
Factors increasing tourism growth in Budapest include:
- excellent quality/price ratio of the services
- low prices
- booming culture
- beauty of the city
- good infrastructure (e.g. cheap public transport)
A vacation rental success story
HOSTIE is specialized in operating Airbnb rentals for clients who want to rent their apartments for tourist for short terms but they do not have time to deal with it. Mr. Máté Váradi, manager revealed that his company has exceeded all expectations within a year. He is sure that there is still high potential in vacation rentals, although he also experience that rental prices on the boulevard have been reaching vacation rental prices.
Location is Key to Success
An apartment is worth renting for tourists if the occupancy rate is 60 % a year, which means that it is rented at least for 200 days. Good location is the precondition.
Suitable Locations:
- Apartments around the boulevard
- Center of Buda
Fewer Apartments for Vacation Rentals
Latest rental market dynamics can show that apartments suitable for vacation rentals for tourists in the downtown - with elevators, air-conditioning, highers floor overlooking the street – are being sold out.
(Source: http://24.hu/fn/penzugy/2016/02/27/az-alberleti-arak-mar-utolertek-a-lakashoteleket/)
