Average Rental Yields by Budapest District – 2025 Edition
If you’re considering investment property in Budapest, understanding rental yields across the city’s districts is essential. This blog dives into actual data to help you see where your money could work hardest.
1. Overall Rental Yield Landscape in Budapest
- As of Q3 2025, the average gross rental yield in Hungary stands at 5.06%.
- Budapest outperforms the national average, with figures hovering between 5.3% and 5.4%, depending on the report.
2. District-by-District Breakdown
| District | Gross Rental Yield | Highlights |
|---|---|---|
| VIII (Józsefváros) | ~5.82% (3-bedroom) | Highest yields due to affordable buy-in and strong demand from students/young professionals. |
| VII (Erzsébetváros) & XIII (Újlipótváros) | 5.2–5.6% | Great mix of lively nightlife (VII) and business access (XIII). |
| VI (Terézváros) | 4.8–5.1% | Nice location with cultural appeal, slightly lower yield due to higher pricing. |
| V (Belváros–Lipótváros) | 4.8–5.0% | Prime location—lower yield but strongest tenant quality and capital appreciation. |
| Buda-side districts | ~5.63–5.73% | Typically serve families and long-term tenants, generating higher yields on the residential side. |
3. What’s Driving These Differences?
- Budget-friendly investment: District VIII’s lower purchase prices make it a darling for yield-focused investors.
- Short-term rental demand: Districts VII, V, and VI benefit from Airbnb-style gains—with gross yields up to 6–10% for short lets, resulting in net yields around 4–6%.
- Premium location trade-off: District V commands high rents but lower yield percentages due to its elevated purchase prices.
- Capital appreciation potential: Central districts (like V, XI, XIII) may deliver lower rental yield today but could outperform in long-term value increase.
4. Market Trends: What You Should Watch
- Rental yields are slightly declining—a result of fast-rising purchase prices eclipsing rent growth.
- Rent growth remains strong—Budapest average rents rose ~9.6% year-on-year in rental inflation, with monthly averages around HUF 257,000 (~USD 695).
- Short-term rental regulation tightening—District VI will see Airbnb bans starting in 2026, possibly shifting those rentals to other districts or into long-term rental markets.
5. Key Takeaways for Investors
- Best gross yield spots:
- District VIII leads the pack (~5.8%).
- Districts VII, XIII offer strong mid-range yields (5.2–5.6%).
- Best for growth and stability:
- District V and Buda-side districts offer lower yields now—but often higher long-term value.
- Short-term rentals can boost profit, but newer regulations may impact your investment strategy.
- Stay agile—as rental yields soften, combining yield insights with capital appreciation forecasts is vital.
Final Thoughts
Budapest remains one of Europe’s most compelling rental yield markets—with gross yields commonly between 5% and 6%, outperforming many Western cities. District VIII, VII, and XIII stand out as yield leaders, while District V and Buda offer a balance of lifestyle and future value.
Whether you’re chasing rental income today or growth over time, Budapest delivers strong opportunities—if you stay informed, adaptive, and strategic.
Let me know if you’d like an interactive investment map, or personalized yield projections for specific Budapest neighborhoods!