detailed search
- sqm
simple search
July 29th, 2016

Planning on purchasing a flat? If you make the right moves, you can hit big bucks – Part two

Downtown locations are also popular amongst the youth, from where educational centres are easily accessible because of the availability of transport, and also are close to recreational places and sources for entertainment. On the other hand, these are less and less available for university students because of their expensive pricings, but students from abroad can still afford them and still make them popular.

Families or those who move to the capital from the countryside are insisting less on living in the city centre, where the high prices can make renting flats unavailable for many. The aforementioned groups are also seeking panel flats because of their cheap rentals, and they don’t insist on living in brick-built housing either.  Almost every property can find its lessee in these times of overly high demands on the leasing market, but for the sake of return maximisation, it’s useful to make calculations for the property in question before actually purchasing it.


The big question: short-term or long term?

To decide which method we prefer, it’s important to think through the amount of returns we are expecting from the business, and the amount of actual work we are ready to do for this amount of money. Generally, short-term accommodations and leases grant a higher return compared to long-term ones, but these acquire many more sacrifices and can only be classified as a second job or occupation – it’s not sufficient to collect the rent once a month and check if the monthly bills had been paid. You have to take care of occupancy rates, accepting your guests, solving problems that might emerge, organising cleaning duties. In addition, to get positive feedback and ratings, you might even have to prepare programs and pastimes for your guests.


Moreover, incomes are much less secure: currently, 7000 flats in Budapest are listed in Airbnb’s database, which means the competition is big, and the acquisition of money might be hectic – summer usually comes with more inquiries, while it’s more difficult to have guests between the months of November and February. Because of the aforementioned reasons, short-term leasing is a much more risky business.

Incomes are generally much greater in case of accommodation-type leasing, but expenses are also higher because of tourist and municipal taxes and referral fees. In addition, overhead expenses also have to be taken into account, as in case of hotel flats, these are a responsibility of the owner, but we shouldn’t forget about the costs of cleaning and various other services either. In comparison, long-term leases only cost the owner if there’s something to be fixed, which means only amortisation can be a possible problem.

The last part of the article will be about the causes of the differences between short-term and long-term leasing, and it will also contain the details of the model used for this analysis.




Interested in buying a property in Budapest?

Interested in buying a property in Budapest?

Contact us to get a tailor made investment advice from the Budapest market specialist.


Send Enquiry

Market News

We keep you posted on property prices in Budapest and real estate market trends in Hungary

How Real Estate Investors Can Enter Hungary Now?

Good news: you can still get entry to Hungary if you are planning a business travel from the EU, the European Economic Area and many more countries. You only need documents that verify the purpose of your travel.  ...

Increasing Number of Foreign Property Buyers in Budapest

3753 properties were sold to international buyers in 2019 which is 6% growth compared to the year before.   According to the recently published data on (official site of the Hungarian Government) the...

Housing and Rental Prices Change in Hungary and Europe

According to Eurostat’s analysis, the real estate market in Hungary is slowing down, which is good news for investors, buyers and tenants alike. In half a year, Hungary slipped from the first to the tenth place...

InterNations: Budapest Among the Top 20 Cities

InterNations has compiled a list of the 2019 worst and best cities for expats called Expat Insider. Budapest finished in the top 10 in the local cost of living category, but also achieved remarkable results in other...

The Largest Stadium in Hungary was Opened in Budapest

A new national stadium opened in Budapest after 66 years. The match, which started at seven o'clock in the evening, opened the largest and most modern facility in Central Europe. Hungary and Uruguay were playing on the...

Developing Budapest - The Latest Developments of the Liget Project have been Released

The latest developments of the Liget Budapest Project have been completed. The Playground and Millennium House has opened their doors to visitors. The Városliget (City Park) is one of the first public parks in...

Subscribe to our mailing list

Tower Investment
Contact Us Now on Phone or via Form

H-1053 Budapest, Egyetem tér 5.
Tel.: +36 1 808 9777

© 2019 Tower Investments | All rights reserved
Prices of apartments are indicative only. Pricing and availability should be confirmed with Tower International.


Searching for the Best Property Service?

Contact us today and let us guide you in the Budapest real estate market!

  • Trusted by 4000+ clients
  • More than 15 years of experience
  • Leading Property Experts for Foreigners

“I’ve managed to restaure and sell a flat in Budapest. Tower was the most professional and I was happy of my choice.”
- Maximilien

“They have very dedicated, thoughtful and professional staff”
- Hoáng

Excellent personal service, efficient and friendly. Highly recommended for buying real estate.”
- Ian