Budapest District Majors Weigh In on Terézváros Airbnb Ban

The recent decision by the residents of Terézváros, the 6th district of Budapest, to ban Airbnb-type accommodations starting from January 1, 2026, has ignited a heated debate among the city’s district majors and stakeholders in the tourism industry. The unprecedented move, which limits the number of days private and other accommodations can be rented out to zero, has left many questioning whether other districts will follow suit and what the implications will be for Budapest’s housing market and tourism sector.

In the wake of the Terézváros decision, prominent figures in Budapest politics, such as Alexandra Szentkirályi, have expressed their intention to propose similar regulations for the entire city and possibly even nationwide. This has prompted district majors to weigh in on the matter, revealing a divide in opinions on how to best address the issue of short-term rentals.

Krisztina Baranyi, the major of Ferencváros (9th district), believes that a complete ban is not a wise decision for her district, although she acknowledges the problems that arise when companies purchase multiple units in apartment buildings, essentially creating hostels within residential areas. On the other hand, Péter Niedermüller, the major of Erzsébetváros (7th district), supports transparent and mandatory regulations that allow local governments to decide on short-term rental policies within their own jurisdictions, rather than a general ban.

The 5th district, led by Péter Szentgyörgyvölgyi, was the first to tackle the issue of short-term rentals in 2020, setting a maximum limit of 5% for the number of private and other accommodations allowed within a single building and establishing rules for community coexistence.

As the debate continues, organizations representing apartment owners and responsible hosts, such as the Hungarian Apartment Renters Association (MAKE) and the Association of Responsible Accommodation Providers (FSZKSZ), have voiced their concerns. They argue that Airbnb-type accommodations play a crucial role in the success of the city’s tourism, with guests often spending more at local businesses compared to hotel guests. The organizations have proposed alternative solutions, such as a temporary moratorium on new licenses and targeted tax increases, to address the issues while maintaining the benefits of short-term rentals.

The fallout from the Airbnb ban in Budapest has highlighted the complex nature of balancing the interests of residents, property owners, and the tourism industry. With the 2026 deadline still years away, there is ample time for further discussions and potential changes in the regulatory landscape. However, it remains to be seen how the various districts will navigate this issue and what impact the final decisions will have on Budapest’s housing market and the lives of its inhabitants.