Restrictions on Airbnb in Budapest may pose challenges for tourists, potentially reducing their numbers. While an increasing number of visitors to Budapest—and Hungary more broadly—are opting for private accommodation (commonly referred to as Airbnb), the government has imposed a ban on the creation of new private rentals until 2026. Terézváros, one of Budapest’s central districts, has taken matters further by banning the practice entirely from next year. However, this move has been challenged by the government office, and the courts may now decide whether the district’s stringent Airbnb ban will hold. If the hotel industry lobby prevails against private lodging, it could significantly reduce accommodation capacity—particularly in the capital—leading to serious complications.

Many tourists choose Airbnb-style rentals in Budapest

According to the economic news site g7.hu, in 2024, of the 44.8 million guest nights spent in Hungary, 14.4 million were in private or alternative accommodation rather than hotels. The sector is highly profitable, which explains why private rentals—commonly referred to as Airbnbs—have experienced the most growth in Budapest in recent years.

Citing a housing crisis and soaring rental prices, the government introduced a moratorium on new private rental permits until 2026. Those who applied by the end of last year were still granted licences—except in District VI. Following a local referendum in September 2024, Terézváros imposed a total ban on Airbnb, technically limiting rental activity to zero days. This decision is now the subject of a legal challenge by the government office, meaning a court will decide whether the strict regulation remains in force. In the meantime, no new permits have been issued in the district for some time.

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Terézváros mayor holds firm

Tamás Soproni, the district’s mayor from the Momentum party, says he is confident as court proceedings approach. According to him, Parliament granted the district the authority to make this decision, and he believes that either the Supreme Court or the Constitutional Court will support their rationale. Opposing this stance are the Hungarian Association of Apartment Hosts and the government office, who argue that the real issue lies with illegal Airbnb listings. They submitted a list of over 700 such listings to the mayor, but Soproni’s team has only been able to verify around 40 due to limited resources.

The Association claims that significant tax revenues from hosts could be used to address problems caused by tourism, but alleges that the local government has no intention of doing so. Instead, critics argue that the district is choosing to dismantle the livelihoods of thousands of families who rely on tourism.

From an electoral perspective, the decision may make sense—most voters in the district do not own Airbnbs, but are dissatisfied with the city centre becoming increasingly empty.

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The restrictions appear to have the backing of the hotel lobby, although surveys suggest that a reduction in Airbnb availability will not necessarily drive tourists towards hotels. Some travellers may simply decide not to visit Budapest at all.

Meanwhile, curbing Airbnb has also failed to reduce rental prices. Earlier this week, it was reported that the Hungarian Central Statistical Office (KSH) found rents had once again risen significantly. A new 3% government-backed mortgage scheme is expected to drive prices even higher.

Without private rentals and Airbnbs, tourism in the capital could suffer. At the same time, these restrictions have shown little impact on rental prices. Even though Terézváros is offering to halve property taxes for owners who choose long-term rentals over short-term lets, the effect remains unclear.

The G7 article also notes that Budapest’s inner districts do not yet suffer from over-tourism—a phenomenon that has prompted crackdowns in several Mediterranean countries.

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