Best Districts in Budapest for Property Investment (2026)

Top Areas for High Rental Yields, Capital Growth, and Long-Term Investment Security in Hungary’s Booming Real Estate Market

1. District VIII – Józsefváros & Corvin-negyed

One of the leading areas for investors due to high rental yields (≈5.5%–6.5%), relatively affordable purchase prices, and ongoing gentrification. Corvin-negyed and surrounding neighborhoods attract students, young professionals, and mid- to long-term tenants, creating strong occupancy levels.

Best for: Yield-focused investors, refurbished apartments, young tenant demand.

2. District IX – Ferencváros

Ferencváros area combines modern development, strong rental demand, and rising property values. Areas near Mester utca, Ráday utca, and the riverside are especially attractive for families and professionals. Rental yields here are solid, often above city averages.

Best for: Balanced capital growth and long-term rental income.

3. District XIII – Angyalföld / Újlipótváros

A mature, desirable neighborhood with good infrastructure, transit, and corporate tenant demand. While prices are higher than in outer districts, rentals remain strong and price appreciation continues.

Best for: Stable long-term rentals and expat appeal.

4. District XI – Újbuda

This district (especially around Bartók Béla út, Móricz Zsigmond tér, and Kopaszi-gát) is one of Budapest’s fastest-developing areas for residential and mixed-use projects. It offers good infrastructure with ongoing developments that support future price growth.

Best for: Families, new builds, and moderate yields.

5. District VII – Erzsébetváros

Although some short-term rental rules are tightening, Erzsébetváros remains popular with students and young professionals. Its central location and nightlife culture keep rental demand high, though yields are slightly affected by higher purchase costs.

Best for: Central location, student rentals, lifestyle tenants.

6. District V – Belváros-Lipótváros

The prestigious city centre delivers excellent tenant quality and strong capital growth, though rental yields tend to be lower (≈4.5%–5.5%) because of high entry prices. This area is suited to investors prioritising appreciation and premium tenants.

Best for: Premium, long-term wealth building.

7. District II – Rózsadomb / Pasarét

One of Budapest’s most sought-after luxury neighborhoods with scenic views, green surroundings, and high demand from families and affluent tenants. Growth is steady but entry costs are higher, and yields often reflect the premium nature of the area.

Best for: High-end investment and family rentals.

8. District XIV – Zugló

A family friendly, affordable alternative to the central districts, Zugló combines parks, schools, and nice living environments, appealing to long-term renters. While yields are moderate, the stable demand and lower price point can make it a smart choice.

Best for: Suburban feel within city limits and long-term occupancy.

District	Rental Potential	Price Growth	Best For
VIII	★★★★★	★★★★☆	High yields & gentrification
IX	★★★★☆	★★★★☆	Balanced yield & growth
XIII	★★★★☆	★★★★☆	Expats & modern rentals
XI	★★★★☆	★★★★☆	New developments
VII	★★★★☆	★★★★☆	Central lifestyle rentals
V	★★★☆☆	★★★★★	Prestige & capital growth
II	★★★☆☆	★★★★☆	Luxury & family demand
XIV	★★★☆☆	★★★☆☆	Stable & affordable

• Yield-driven strategies tend to perform best in areas like District VIII, IX, and XIII where purchase prices haven’t fully priced in rental demand yet.

• Capital appreciation plays a bigger role in premium central districts such as District V and II, where tenants are often professionals or families willing to pay higher rents.

• Emerging hubs like District XI and XIV are ideal for buyers seeking balanced growth and stable long-term occupancy without the highest price tag.

  
  

Source: Empire Real estate and the local authorities statistics