What return on investment can we expect from a rental apartment in Budapest?

The rental yield (gross yield) is the simplest indicator used to estimate the return on an investment: the annual rental income is divided by the purchase price and then multiplied by 100.

Important considerations for calculating a realistic yield

Gross vs. net yield – to calculate the real, net return, common costs, maintenance expenses, potential vacancy costs, and property management fees must be deducted from the gross yield.

Impact of location – renovated apartments in good condition located downtown typically generate more stable and predictable yields than cheaper properties in less sought-after areas, which may be harder to rent out.

Tenant profile – long-term, reliable tenants mean less administration and risk, while short-term rentals may offer higher yields, but also come with a greater operational burden.

For an accurate yield calculation tailored to a specific property, it is worth consulting an expert – the Midas Management team supports this with a free property assessment.

Long-term or short-term rentals? What is worth choosing in 2026?

This is one of the most common questions investors face.

With long-term rentals, the owner can expect a predictable, monthly income with lower operational efforts, but typically a lower gross yield.

Short-term rentals (Airbnb and similar platforms) can promise higher yields, but in Budapest – similarly to other European capitals – increasingly strict local regulations apply to this activity, varying by district.

For this reason, in 2026, it is crucial for investors to inquire about the current short-term rental regulations of the given district before purchasing, prior to basing their ROI calculations on this strategy.

What to look out for when buying property for investment purposes?

Legal and technical due diligence – checking the title deed, encumbrances, common cost arrears, and the condition of the residential building is essential.

Location and accessibility – public transport connections, nearby services, universities, and office buildings all increase rentability.

Condition and renovation needs – an underpriced apartment in need of renovation can often yield a better return, but without a precise cost estimate, the budget can easily be underestimated.

Realistic assessment of rentability – a beautiful apartment in a poor location will have a much harder time finding a tenant than a smaller property in an excellent location.

Why is it not worth starting without property management?

Many novice investors underestimate the amount of time and energy required for the day-to-day management of a rented apartment: finding tenants, signing contracts, coordinating maintenance, financial administration, and settling potential disputes. This is particularly true for foreign owners who cannot be personally present in Budapest.

A professional property management is not just a convenience service, but directly impacts the yield of the investment:

• reduces vacancy periods through efficient tenant acquisition,

• prevents more expensive breakdowns with regular maintenance,

• ensures rental fees are collected on time,

• and helps determine a rent price aligned with market rates through expert advice.

If you are considering a property investment in Budapest as a foreign owner, it is also worth reading our previous article about the challenges foreign property owners face in Budapest and how to handle them with professional support.

How does Midas Management help property investors?

With over 20 years of experience, Midas Management assists domestic and international clients in the premium property market of Budapest – from selecting the right investment opportunity, through renting and tenant management, to day-to-day operations.

Our services include:

• Property investment advisory – tailored recommendations to maximize returns.

• Property renting – fast, secure rental with reliable tenants.

• Full-scale property management – tenant management, maintenance, financial administration, and operations all in one hand.

If you would like to see what investment apartments are currently available in Budapest, browse through our current properties or contact us for a free consultation.

Frequently Asked Questions

What amount of capital is needed to start a property investment in Budapest?

This depends heavily on the selected district and the type of apartment. For an accurate cost and yield estimate tailored to a specific property, it is highly recommended to consult an expert.

Which is the better investment: long-term or short-term rentals?

There is no single right answer: it depends on the regulations of the district, the owner's available time, and their risk appetite.

Do I need to hire a property management company if I only rent out one apartment?

It is not mandatory, but it can significantly reduce administrative burdens and risks, especially if you do not live in Budapest.