If you bought investment property in Hungary last year, you made a great deal

Latest data suggests that those who purchased apartments last year made a very good deal. Analysis by Portfolio indicated a huge return on their investment.

The analysis published by the site says those who bought apartments last year and rented them out can see more than a 20 percent return on their investment.

In last march the prices on the real estate market were still low. But since the lasting rise of the market and the appearance of Airbnb catalyzing it made rentals very expensive, especially in the capital.

Depending on which country of Hungary is the apartment located in last year’s investment could have brought a profit between 18.7 and 20.9 percent in the 50 m2 category. Out of that 3.5-5.7 percent is the profit from renting out the apartment, the rest originates from the increased price of the estate.

A brick-built apartment which has been bought last year could have brought an even greater profit for their owners, between 20 and 22.4 percent.

Rental prices went through the roof in the last year as Airbnb made its entrance in the Hungarian market and many flats that were rented out before are now offered online for tourists. Owners who can rent out their apartments for at least half of the year most of the time can realize much larger profits from this than if they were renting them out long term. Meanwhile the real estate market is still in an upward trend which is expected to continue in the following months, making the buying of new apartments more expensive – this results in a drop of supply on the market of rental and consequently the increasing of prices.

(Source: http://www.portfolio.hu/ingatlan/lakas/brutalisan_sokat_lehet_keresni_a_lakasokon.4.222424.html)