Budapest Residential Property Market and Hostels
Budapest residential property market kept afloat by "alternative hostels"
While property prices in Budapest are slumping, in some cases to the extent that some properties in downtown are now going for only half of what they used to, this has led to a boom in room rentals or "alternative hostels"...long gone are the days of buying run-down property that is then renovated and sold for a profit. Instead, property buyers are now buying flats in central locations and doing minimal work to convert them so that they can be rented out to tourists.
Well the original article is already a bit exaggerated as the baby boom of hostels already happened in 2005-2006 and the market is already in a supercharged bubble. What actually happens is that some property owners rent out their own rooms during summer but I wouldn't really call'em hostels, especially not if we are talking about Hostelmanagement.com's hostel definition. This trend is called 'Zimmer Frei', aka 'Rooms for rent'. Started in the 60-70's, when there wasn't enough hotels to cater all tourists in Hungary (which was mostly German).