Dear Apartment Owners, Real Estate Agent Partners!
AoB is about to bring to your attention market trends and ad statistics time to time. Let’s face first the overall asking price statistics of the simultaneously listed studio and „garzon” rentals on ApartmentsOfBudapest.com webpage between 23rd May 2018 and 22nd June 2018. (The statics were made on 22nd June)
For the start lets’s define two important phenomena involved into this report:
“Garzon” apartment: It is a Hungarian term (comes from French) traditionally used for a one person apartments (most common in Budapest). They are usually small (generally till 35 sqm) and basically they come with a separate kitchen. The mayor difference between a studio and a garzon apartment is that in the case of a studio flat the living room, the bed room and the kitchen function is definitely in the same premise. Only the bathroom and the toilet can be separate and studio apartments don’t need to be necessary small. They can be even 80 sqm large.
Asking price: While analyzing the current Budapest results below, it’s important to remind ourselves that the asking price itself never reveal what the transaction price really was at the end.
Ours trends are only relevant to show for what rental fees the Lessor side offered their matching Budapest properties in this interval to the visitors of our page.
We came to our conclusion by picking both, studio flats and garzon flats with the only criteria of having one room (no separate bedroom). We added the apartments above the size of 26 square meters, so also quite small ones, and we didn’t define any upper limit. We enlisted extraordinary huge ones as well (like 72 sqm) but most of the examples remained below 50 sqm:
Our restricted pool contains 50 selected samples from the simultaneously listed 315 Budapest apartments: only such flats which neither have price-raising factors (such as big balcony / terrace or newly built apartment building, etc.) nor have price reducing features (such as being on the ground floor, unfurnished condition, etc.)
The average price of the chosen apartments: 439,33 Euro / month
A median price of the chosen apartments: 420,66 Euro / month
The minimal price among the chosen apartments: 311,33 Euro / month
The maximal price among the chosen apartments: 719,33 Euro / month
As written above, the asking price is always higher than the transaction price. One of the mayor reasons is that asking price statistics wouldn’t calculate with the negotiation factor which is quite common practice. According to our experience a one premise (studio or „garzon”) apartment actually rented out on the price of 439,33 Euro / month must have quasi flawless features in terms of location, design and equipment.
We took for an example a listed apartment with a rental fee approaching the average price level well enough (430 Euro / month):
We can see that the apartment with its 27 square meters is rather below the average ratio of the studio / “garzon” size. It is as much obvious what are the features that compensate these dimensions: the up to date look, the harmonic appearance, the complete equipment with attention to the detail. The last one is especially important when the target person is a student even from abroad. This thinking makes sense here considering that this apartment is situated in the Rottenbiller street (Budapest, VII. district), close to several university buildings.
From the photos the equipment seems to be as detailed as if it was an „airbnb” accommodation. Although the design looks like deliberate and conceptual, it would attract a lady tenant more likely. It is also a clever way to match the image of the apartment with the target group when we create one obviously feminine or one clearly masculine style. In the case of studio or “garzon” flats we don’t even have to worry about narrowing our pool too much and loosing unnecessary many clients. These flats are popular enough to locate their tenant even of a thinner demand.
Regarding its basic features this apartment fits the general needs of the target group. It is on the third floor, therefor doesn’t matter that the windows are facing the courtyard, it gets enough sunlight. Although the ad doesn’t say a word about the elevator, even the lack of a lift wouldn’t be a problem by most of the young people.
The more critical points could be the less popular gas convector heating, the smaller size refrigerator, the availability of only two hot plates but basically these are compromises that flat hunters usually take in order to get an attractive apartment in a good location.
From the basic student needs: double bed, desk and enough storage space this flat earns only top mid ratings. The wardrobe closet it is a smaller than requested but there are more clothe-hangers, commode with drawers and shoe holder to balance this problem. The mezzanine is more stylish than the usual old school Hungarian standard and in this case is also especially useful because it literally divides a living area below and a sleeping area above. The sofa is transferable to a bed so the hospitality option is solved.
About current example we can state that despite it is not an average Budapest apartment from every possible perspective it has enough pros and cons to be represent the middle of the category. When it comes to our own listed rental apartment it is useful to valuate it from similar aspect. It's important to see how we actually stand up against the concurrent apartments, not only compering our price to the concurrent prices.
If you have an apartment for rent as well, here you can see how you can advertise it ApartmentsofBudapest.com: