Average gross rental yields in Budapest range from three percent in premium Buda residential areas to over seven percent in central Pest districts focused on short term rental. The highest gross yields in 2026 are in District 7 (Erzsebetvaros) for short term rental, District 8 (Jozsefvaros) for long term student and young professional rental, and District 9 (Ferencvaros) for new build long term rentals. Below is a district by district breakdown.
How to Read These Yield Numbers
Gross rental yield is annual rent divided by purchase price, expressed as a percentage. It does not deduct costs.
Net rental yield deducts management, vacancy, maintenance, common charges, and tax. Budapest net yields are typically gross yield minus one to two percentage points.
All numbers below assume the apartment is in good rentable condition and represent realistic 2026 market levels.
District by District Yields
District 5 (Belvaros, Lipotvaros) Average purchase price per sqm: 3,500 to 5,000 EUR Long term rent for a 50 sqm 1-bedroom: 900 to 1,300 EUR per month Gross yield: 3.5 to 4.5 percent Best for: capital preservation, diplomatic and corporate tenants
District 6 (Terezvaros, Andrassy) Average purchase price per sqm: 2,700 to 4,000 EUR Long term rent for a 50 sqm 1-bedroom: 800 to 1,200 EUR per month Short term ADR (average daily rate): 80 to 130 EUR with 70 to 80 percent occupancy Gross yield long term: 4.5 to 5.5 percent Gross yield short term: 6 to 8 percent Best for: balanced investors who want culture, nightlife and rentability
District 7 (Erzsebetvaros, Jewish Quarter) Average purchase price per sqm: 2,400 to 3,500 EUR Long term rent for a 50 sqm 1-bedroom: 750 to 1,100 EUR per month Short term ADR: 80 to 140 EUR with 75 to 85 percent occupancy Gross yield long term: 5 to 6.5 percent Gross yield short term: 6.5 to 8 percent (subject to current STR rules) Best for: short term rental investors, party tourism market
District 8 (Jozsefvaros) Average purchase price per sqm: 1,800 to 3,000 EUR Long term rent for a 50 sqm 1-bedroom: 650 to 950 EUR per month Gross yield: 5.5 to 7 percent Best for: value investors, student rental near universities, longer term capital appreciation
District 9 (Ferencvaros, new builds) Average purchase price per sqm: 2,200 to 3,500 EUR for new builds Long term rent for a 50 sqm 1-bedroom in a new build: 800 to 1,100 EUR per month Gross yield: 4.5 to 6 percent Best for: modern living tenants, lower maintenance, easier rentability
District 13 (Ujlipotvaros, riverside) Average purchase price per sqm: 2,500 to 3,800 EUR Long term rent for a 50 sqm 1-bedroom: 800 to 1,100 EUR per month Gross yield: 3.5 to 4.5 percent Best for: low turnover family or expat tenants, lowest vacancy rate in the city
Buda Districts 1, 2, 11, 12 Average purchase price per sqm: 2,000 to 4,500 EUR Long term rent for a 60 sqm 2-bedroom: 900 to 1,300 EUR per month Gross yield: 2.5 to 3.5 percent Best for: family rentals, low turnover, capital appreciation rather than yield
Short Term Versus Long Term Rental Strategy
Long term rental (six month plus tenancy) gives steady predictable income, low management overhead, low vacancy, and tax simplicity. Typical yields are four to six percent gross.
Short term rental (nightly via Airbnb, Booking.com) can boost yields to six to eight percent gross but requires active management or a management agency (which takes fifteen to twenty five percent of revenue), licensing compliance, and is subject to district by district restrictions introduced in Budapest in 2025 and 2026.
For most foreign investors, long term rental delivers a better risk adjusted return after considering the management hassle and regulatory exposure of short term rental.
Realistic Net Yield Example
A 50 sqm apartment in District 7 purchased for 130,000 EUR, renovated for 15,000 EUR, total cost 145,000 EUR.
Long term rent: 850 EUR per month, annual gross 10,200 EUR.
Annual costs: common charges 700 EUR, vacancy and management 1,000 EUR, insurance 200 EUR, maintenance reserve 600 EUR. Total 2,500 EUR.
Net rental income before tax: 7,700 EUR.
Hungarian tax (15 percent flat): around 1,150 EUR.
Net after tax: 6,550 EUR. Net yield: 4.5 percent.
Frequently Asked Questions
What is the realistic net yield in Budapest? Long term rental net yields are typically three to five percent after all costs and tax.
Are short term rentals still allowed in Budapest? Yes in most areas, but the City of Budapest tightened rules in 2025 and 2026. Always confirm the building's current status before buying for STR.
What rental yield should I aim for? Five to six percent gross is healthy for Budapest. Above seven percent usually means higher risk (location, condition or regulatory).
Should I buy renovated or unrenovated? Renovated apartments rent faster and command higher rates. Unrenovated offers more upside but requires capex, time and project management.
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