Rental prices fall: how to renegotiate your monthly rent

According to the KSH–ingatlan.com rent index release, asking rents fell by 1.1 per cent nationally and 1.3 per cent in Budapest in October 2026 compared with September. Pénzcentrum reports that this was the largest monthly decline since December 2020. For tenants, this may be an opportunity to review their housing costs, while landlords may wish to reconsider their pricing.

Monthly decline alongside annual increases

According to the KSH–ingatlan.com release, October rents were still 5.5 per cent higher nationally and 5 per cent higher in Budapest than a year earlier. The monthly decline therefore does not mean that the rental market has generally become cheaper than last year: a short-term fall can coexist with an annual increase.

The same release shows that inflation-adjusted rents, known as real rents, fell by 1.5 per cent nationally and 1.7 per cent in the capital over the month. This measure illustrates how rents have changed relative to the general level of consumer prices. However, when comparing a tenant’s monthly expenditure, the actual amount payable is the most useful starting point.

Advertised prices do not reflect every tenant’s rent

According to the methodological explanation published by Társasházi Háztartás, the index tracks asking rents for advertised properties. The October figure therefore cannot establish how rents under existing tenancy agreements have changed. The index is best understood as a market benchmark, rather than a way to determine a new rent for a particular property.

Ingatlan.com reports that the median asking rent in the capital fell to HUF 255,000. The median is the middle value when rents are arranged in order, not a recommended price applicable to every property. It would therefore make little sense to use the same citywide figure to set the rent for both a smaller flat needing renovation and a larger, modern property.

Compare similar properties before renegotiating

For tenants, the most useful starting point may be to supplement the national news with a local comparison. Listings for properties in the same neighbourhood, with similar sizes, conditions and amenities, can provide a guide. To make the comparison meaningful, differences in furnishings, floor level, transport links and running costs should also be taken into account.

The October figures also highlight geographical differences: according to a summary by Üzletem.hu, asking rents rose in the outer districts of Pest but fell in the other groups of Budapest districts. This is another reason why a Budapest average alone offers limited grounds for assessing the rent of a particular property. Nearby, genuinely comparable listings may reveal more about the available alternatives.

• Comparable listings: examining several properties with similar characteristics may be more useful than singling out the cheapest advert.
• Total monthly cost: the comparison can include communal charges and expected utility bills as well as rent.
• A specific negotiating goal: the discussion may be clearer if the proposed rent and the period it would cover are explicitly stated.
• A workable alternative: the possibility of moving should be weighed alongside its costs and inconvenience.

Presenting a comparison, rather than demanding a reduction on the grounds of a general fall in prices, may help set a constructive tone. A tenant could suggest a lower rent for consideration or propose discussing the rent for the next period in advance. Reliable payment and careful use of the property may also form part of the conversation, but none of these arguments guarantees the landlord’s agreement.

Moving involves more than finding a cheaper listing

When considering a cheaper offer, it can be useful to separate monthly savings from the one-off costs of moving. Transport, any furnishings needed and a temporary overlap in housing costs can all be included in the calculation. The time and money required to commute from the new property may be equally important.

The comparison will therefore not necessarily lead to the conclusion that moving is worthwhile. The current property might still offer better overall value despite a slightly higher rent, or a modest reduction might be acceptable to both parties. The decision should be based on actual alternatives, rather than an assumption that prices will definitely fall further next month.

Landlords should also consider lost rental income

An analysis by Társasházi Háztartás recommends more cautious pricing for landlords: the publication argues that a prolonged vacancy caused by overpricing can erase the benefit of the higher rent they hope to achieve. This does not mean that every landlord should reduce their rent. Instead, it highlights the importance of considering how readily a property can be let, alongside the advertised price.

To assess this, it may help to compare the potential income from a higher-rent tenancy with an uncertain start date against a lower-rent tenancy that begins sooner. When negotiating with an existing tenant, continuity and the work involved in finding a replacement can also be considered. The right decision may depend on the property’s characteristics and the landlord’s objectives.

Investment performance involves more than monthly rent

According to Pénzcentrum, government-backed home loan programmes may steer some tenants who can afford to buy towards purchasing a property. This is an explanation of market dynamics, not evidence that demand is changing in the same way in every neighbourhood. A single month’s rental data would therefore not justify drawing general conclusions about the future profitability of letting property.

When reviewing an investment, rental income, spending on maintenance and renovation, the possibility of vacancies and changes in the property’s value can be considered separately. This can help avoid making a decision based solely on the monthly rent shown in an advert. The considerations presented here are for general information and do not replace individual financial or legal advice.

Local comparisons can provide a basis for agreement

The October decline is a meaningful signal, but it does not by itself establish a sustained downward trend or determine the appropriate rent for a particular property. Actual alternatives and total housing costs can provide useful guidance for tenants, while realistic pricing and continuity of letting may help landlords. The strongest basis for renegotiation may therefore be a factual assessment of the property’s local market, rather than a striking national figure.