What does the Airbnb ban in the 6th district mean for real estate investors in Budapest?
Flats at the Opera House in the 6th district will no longer be allowed to receive Airbnb guests from 2026.
Flats at the Opera House in the 6th district will no longer be allowed to receive Airbnb guests from 2026.

In September, Budapest’s Terézváros district, also known as the 6th district, decided in a referendum to ban Airbnb and other short-term rentals.
A majority of 450 votes will now decide on a bold experiment with an uncertain outcome.

The decision, which was narrowly carried by 54% (20% of the 35,000 residents took part), is to come into force on January 1, 2026 and will mean that short-term rentals will no longer be permitted in Terézváros, or that the number of days that an apartment can be rented out via Airbnb & Co will be reduced to zero.

This has sparked discussion about similar regulations in other central districts.
Alexandra Szentkirályi from the Fidesz party in Budapest even suggested that she would like to extend the regulation to Budapest or even the whole country.

Now Fidesz is the opposition party in Budapest, so nothing of the sort is to be expected, at least for the capital.

However, observers point out that their party and the associated business groups (including the prime minister’s son-in-law) have invested massively in hotels in recent years and would benefit immensely from such a ban.

On the other hand, the government is also aware that such a move could severely damage tourism.
Statistically speaking, Airbnb tourists spend around 500 euros during their stay and it is highly unlikely that these travelers will simply switch to hotels.
They are more likely to choose another destination.

This is all the more explosive in light of the fact that a recently published study by McKinsey predicts enormous potential for capital city tourism.
But then the question is:

1. what to do with the 5.9 million overnight stays in short term accommodation that would then no longer be legal?
2. where to accommodate the new guests who are expected to increase by around 12% per year?
3. tourism in Budapest alone would contribute 2.5% to Hungary’s gross national product in 2023. But only if it is possible to accommodate all travelers and provide appropriate offers.

After all, they have now overtaken Berlin in terms of numbers and would actually like to close the gap on rivals Prague. Against this backdrop, it seems more than questionable to jeopardize this goal with an Airbnb ban.

McKinsey study - Overnight stays hotel vs Airbnb in Budapest and other European cities

Contribution of Budapest tourism to Hungary's GNP - projection for 2030

How do other districts in Budapest react?

The mayors of other inner city districts seem to reject the ban as a method.
Peter Niemüller, the mayor of the 7th district, which is known for its party scene and ruin bars, expressed concerns about a general ban.
There are currently around 4,400 short-term rentals here, which have a strong influence on the district’s image.
The aim is to work towards a better situation for operators and residents through collaborative approaches.

Similar statements were made by Krisztina Baranyi, the mayor of the 9th district (Ferencváros), and Andras Piko, mayor of the 8th district (Józsefváros). They prefer tailor-made regulations that take account of local circumstances rather than blanket bans.

In the 5th district (Belváros-Lipótváros), the economic center of Budapest, regulation was already introduced in 2020.
Mayor Péter Szentgyörgyvölgyi explained that the feedback from residents was positive and that the existing regulations had proved their worth.
However, the 5th district is also notorious for the fact that most apartments are rented out illegally or unregistered.

Politicians are well aware that bans will not end the existence of short-term rentals, but rather relegate them to the underground.
What it will definitely put an end to, however, is serious investment in the segment.

Can the ban solve the problem of rising prices and rents?

Unlikely.
On the one hand, there are now statistical studies on the major cities in which Airbnb has been banned or strictly regulated, which have not seen a drop in prices.

Secondly: “In Budapest, the proportion of unoccupied apartments is 17%, which is one of the worst figures in the world.
Of the 19 unoccupied apartments, one is an Airbnb apartment and 18 are empty for other reasons.
According to housing activists, half of these, or nine, are empty and unrenovated.
The worst affected are V., VI. and VII.
In the districts, there is an inverse relationship between unoccupied and short-term rented apartments.
This means that the 5th district has the most unoccupied apartments (37%) and the fewest Airbnb apartments (4%).
Incidentally, the 5th district has practically stopped issuing new Airbnb permits, but it is here in the inner districts that both the rent and the sales price are rising the most. Short-term rental contributes to the renewal of the housing stock and reduces the number of apartments that are taken off the market completely without refurbishment,” said Iván Somló, Vice President of the Association of Responsible Accommodation Providers

What does the vote mean for investors?

The potential restrictions raise questions about the future of the Airbnb market in Budapest.
Investors relying on short-term rental income should be aware that stricter regulations or even bans in other districts are not out of the question, although this remains unlikely.
According to experts, comprehensive restrictions on short-term rentals could have a negative impact on tourism, as many tourists would then prefer to choose other cities such as Prague or Krakow.

However, the Hungarian government has not yet made a final decision and is awaiting proposals for new regulation.

The Tourism Consulting Body, an advisory body to the government, recently discussed the situation.
The discussions revolve around the impact of Airbnb on the housing markets and the tourism industry.
New regulations are expected in the coming months at the earliest.

The 6th district is therefore a pilot project that can easily be ended, for example by increasing the number of rentable days from zero to 90 or 120, as in many other metropolitan areas.
However, we will have to wait and see how everything develops, which will not be seen until 2026.

One thing is already certain: if nothing changes in the coming year, Airbnb hosts in neighboring districts will enjoy a drastic increase in demand and better returns from January 1, 2026.
After all, visitors have to find somewhere to stay.

More posts from our blog for investors

Wählen Sie Ihren Termin zum Kennenlernen -
natürlich kostenlos.

Die Kommunikation findet zu jeder Zeit in deutscher Sprache statt –
auch bei Terminen vor Ort in Budapest.

Choose your date to get to know each other -
of course free of charge.

Communication takes place in English at all times –
also for appointments on site in Budapest.