The Budapest residential rental market opened Q1 2026 with continued strong demand, particularly in the inner districts. District XIII (Újlipótváros) maintained its position as the top-performing district for foreign investors with gross yields averaging 5.6–6.1%.
District XIII — Gross yield: 5.8% avg. Vacancy rate under 2%. Strong expat demand continues to drive premium furnished apartment prices. Average rent for a 2-bedroom furnished unit: 480,000–550,000 HUF/month.
District IX — Gross yield: 5.2–5.5%. Ferencváros continues its gentrification trajectory. New builds displacing older stock. Best value in the city for buy-to-let below €150k.
District XI — Gross yield: 4.8% avg. Student and young professional demand. More stable but slower capital appreciation.
District V — Gross yield: 3.8–4.2%. Prime inner city. Lower yield offset by capital appreciation and liquidity. Not ideal for yield-first investors.
The MNB EUR/HUF rate closed Q1 at 398.5, down from 402 at end of 2025. This 0.9% strengthening of HUF improved EUR-denominated net income by approximately the same amount for foreign investors.
Forward demand indicators remain positive through summer 2026 with the continuation of Budapest's expat and digital nomad influx. Supply of quality managed rentals remains constrained, supporting rental price growth of 4–6% YoY.