According to the latest figures, 13,492 homes were sold in Hungary in 2019, an increase of 2.4% compared to the same period a year earlier .

Since the beginning of 2019, a record number of 50,000 homes have been sold.

Moreover, as we have recently mentioned, the residential market has been experiencing dizzying growth in Hungary for several years.

Eurostat highlights that Hungary is the country that has recorded the strongest growth since 2015 within the European Union countries, with an increase of 31%.

Budapest, for its part, was the European city that recorded the strongest growth in 2018 with 19%.

Some districts in Budapest have experienced a dramatic rise in prices. One consequence of this rise is the decline in yields, which currently stand at around 4%.

What is the situation in other major Hungarian cities?

This article gives us the opportunity to take stock of the major cities with student rental potential in Hungary: Debrecen, Szeged and Pécs.

The residential real estate market in Debrecen

Debrecen is Hungary's second largest city with a population of 210,000. It is home to the country's other airport and a large student population.

Price/m² in 2019

As of 05/01/2019, the average price/m² in Debrecen city center was 1705 euros/m².

Analysis of developments in Debrecen

As in all major Hungarian cities, property prices in Debrecen plummeted after the 2007 financial crisis, reaching a historic low of €709/m². It was not until early 2018 that they returned to pre-crisis prices, with prices per m² reaching around €1,258.

The residential real estate market in Szeged

Szeged is the fourth largest city in Hungary with a population of 165,000. The city is particularly renowned for its universities (medicine and law). It is located in southern Hungary, close to the Serbian and Romanian borders.

Price/m² in 2019

As of 05/01/2019, the average price/m² in Szeged city center was 1680 euros/m².

Analysis of developments in Szeged:

The growth curve is very similar to Debrecen, with sustained growth since 2014. Similar to Debrecen, between 2014 and 2019, the price/m² in Szeged more than doubled.

The residential real estate market in Pécs

Pécs is the fifth largest Hungarian city, located in the west near the Croatian border. It has a population of 155,000. It is similar to Szeged in terms of population and university facilities.

Price/m² in 2019

As of 1/05/2019, the average price/m² in the city center of Pécs was 1,047 euros/m².

Analysis of the evolution in Pécs:

Unlike Debrecen or Szeged, the growth curve from 2014 to 2018 was very limited, with prices per square meter not exceeding the threshold of 900 euros per square meter. Even more surprisingly, prices soared at the end of 2018 before falling back and stabilizing since May 2019 at around 1050 euros per square meter.

What are the advantages of investing in the real estate market in secondary cities?

Despite rising prices in major secondary cities like Szeged and Debrecen, these cities still offer higher rental yields than Budapest, while retaining attractive growth potential. As we analyzed in a recent article, demand for quality housing, particularly from international students, continues to grow in Hungary.

It is still possible today to obtain net returns of between 6-7% for budgets of around 250,000 euros.

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