Budapest’s District 6 Airbnb Ban: What It Means for Travelers and the Rental Market
The landscape of accommodation in Budapest is undergoing a dramatic transformation. On November 11, 2025, Hungary’s Supreme Court upheld a groundbreaking decision by Terézváros, the city’s vibrant District 6, to completely ban short-term rentals like Airbnb starting January 1, 2026. This ruling marks the first time a Hungarian municipality has successfully implemented such a comprehensive prohibition, and its ripple effects are already being felt throughout Budapest’s rental and real estate markets.
Mayor Tamás Soproni announced the Supreme Court’s decision with satisfaction, emphasizing that the court found the regulation lawful and proportionate. The judges determined that protecting residents’ peace and quality of life justifies the restrictions on short-term rental operations, and importantly, that the ban doesn’t unlawfully violate the freedom of enterprise. This legal validation came after the Government Office challenged the district’s regulation, arguing it overstepped municipal authority.
Understanding the District and Its Decision
Terézváros holds a special place in Budapest’s geography and culture. This is the district where the magnificent Andrássy Avenue cuts through the heart of the neighborhood, lined with UNESCO World Heritage architecture, elegant cafes, and cultural landmarks. The Hungarian State Opera House, Liszt Ferenc Music Academy, and the bustling Oktogon intersection all call District 6 home. It’s a neighborhood where grand fin-de-siècle buildings stand alongside contemporary bars and restaurants, creating an intoxicating blend of old-world charm and modern urban energy.
The path to this ban began with a local referendum held in September 2024, where residents voted on whether to prohibit short-term rentals entirely. With a turnout of just over twenty percent, fifty-four percent of participating residents supported the prohibition. While the margin was narrow and turnout modest, the decision reflected growing frustration among locals about the concentration of tourist accommodations and their impact on neighborhood life. Complaints centered on noise disturbances, the erosion of community cohesion, and concerns about housing affordability as more apartments were converted to short-term tourist use.
The regulation that takes effect in January 2026 is unambiguous and strict. It reduces the number of days an apartment can be legally rented for short stays to zero, effectively eliminating platforms like Airbnb and Booking.com from operating in the district. Property owners face serious consequences for violations, with individuals subject to fines of 200,000 Hungarian forints and companies potentially facing penalties up to 2 million forints. Authorities can also temporarily close properties for up to forty-five days for breaching the rules.
Market Shifts Already Underway
Even before the ban officially takes effect, Budapest’s rental market is experiencing noticeable changes. According to data from the Hungarian Central Statistical Office and ingatlan.com, rental prices across Hungary fell by 0.7 percent in October 2025, while Budapest specifically saw a one percent decline. Over the two-month period of September and October, nationwide rents decreased by nearly two percent, a scale of decline not witnessed since the pandemic’s peak in late 2020.
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District 6 itself recorded median rents of 280,000 forints in early November, which represents a 20,000 forint drop from July levels and matches exactly what renters were paying a year earlier. This stabilization and slight decline stands in contrast to other central districts like the 2nd District, where median rents remain at 360,000 forints, or the 13th and 11th Districts at 270,000 forints each.
Real estate experts attribute much of this downward pressure to two simultaneous forces reshaping the market. The first is the Airbnb ban itself, which is pushing property owners to reconsider their investment strategies. The second is the Hungarian government’s Otthon Start homeownership program, launched in September 2025, which offers first-time homebuyers loans up to 50 million forints at a fixed three percent interest rate over twenty-five years with only a ten percent down payment required.
Szilvia Csendes-Kálmán, managing director of Columbus Real Estate, a company specializing in Budapest’s inner districts, explains that these dual pressures are triggering a significant market reorganization. Many centrally located apartments previously operated as short-term rentals are now entering the long-term rental market or being put up for sale. This influx of supply is creating stronger competition among landlords, leading to the rental price declines observers are documenting.
The Otthon Start program deserves particular attention for its market impact. By enabling tenants to purchase their first homes at favorable rates, the program is simultaneously reducing rental demand while expanding available supply. Current data shows approximately 15,000 residential rental listings available across Budapest and major Hungarian cities, representing a five percent increase compared to the previous year.
What Property Owners Are Doing
For property owners in District 6 who previously operated Airbnb-style accommodations, three options remain: using the property themselves, renting it long-term, or selling it. The third option no longer provides an escape from the regulation since the ban applies to the property itself, not just the current owner. This reality is pushing most owners toward the first two choices.
Mayor Soproni has expressed optimism that many property owners will shift toward long-term rentals, and the district plans to encourage this transition by offering a seventy-five percent reduction in local property taxes for apartments rented on long-term contracts. This incentive aims to soften the financial blow for investors who purchased properties specifically for short-term rental income, which typically generates higher returns than traditional leasing.
Real estate analysts predict this transition will take time and won’t be entirely smooth. Some owners may initially try to sell, which could temporarily depress property prices in the district, at least in the short term. Properties in the 30 to 55 square meter range that were renovated specifically for tourist appeal may see rental fee drops of five to fifteen percent during the first half of 2026 as owners adjust their expectations to long-term rental market realities.
Implications for Travelers
If you’re planning a trip to Budapest in 2026 or beyond, the District 6 ban means you’ll need to look elsewhere for accommodation if you want to stay in the immediate vicinity of Andrássy Avenue, the Opera House, or Liszt Ferenc Square. However, Budapest’s accommodation landscape remains diverse and visitor-friendly. The adjacent District 7, known as the Jewish Quarter and home to the famous ruin bars, still permits short-term rentals, as do most other districts across the city.
Traditional hotels, hostels, and licensed guesthouses continue operating normally in District 6, so the area isn’t closed to tourists entirely. The ban specifically targets apartment-style short-term rentals operated through platforms like Airbnb, not the hospitality industry as a whole.
Some observers note that District 5, which encompasses much of central Pest including the area around the Parliament and the Danube riverfront, introduced restrictions on short-term rentals back in 2020. That district’s mayor reported positive feedback from residents, though the regulations haven’t eliminated illegal or unregistered operations entirely. District 5 essentially stopped issuing new Airbnb permits, yet it paradoxically has the highest percentage of unoccupied apartments at thirty-seven percent while registered Airbnb properties represent only four percent of housing stock.
The Broader Budapest Context
Whether District 6’s ban will spread to other parts of Budapest remains an open question. Twenty-six tourism industry organizations issued a joint statement opposing total bans on short-term rentals, arguing they eliminate jobs, reduce municipal tax revenues, and limit visitor choices. Local businesses in tourist-heavy areas worry about reduced foot traffic if fewer visitors stay in their neighborhoods.
Conversely, resident advocacy groups and housing activists in other districts are watching Terézváros’s experience closely. If the transition proves successful in improving quality of life for locals without devastating the district’s vibrancy and economic activity, other municipalities may follow suit. District 7, despite its current openness to short-term rentals, faces many of the same pressures from residents concerned about overtourism and housing accessibility.
Budapest’s overall rental market will likely continue experiencing downward price pressure through the coming months. The combination of increased long-term rental supply from former Airbnb properties, first-time buyers leaving the rental market through the Otthon Start program, and seasonal factors all point toward a renter’s market in the near term. For those looking to rent long-term in Budapest, particularly in central districts, the next six to twelve months may offer better value than the market has seen in years.
The median rent across Budapest stood at 260,000 forints in early November 2025. Among Hungary’s major cities outside the capital, Debrecen leads at 240,000 forints monthly, followed by Győr and Székesfehérvár at 200,000 forints each. More affordable options exist in cities like Békéscsaba and Szekszárd, where average rents hover around 100,000 forints.
Looking Ahead
The Supreme Court’s validation of Terézváros’s regulation represents a potential watershed moment for how European cities balance tourism, housing affordability, and resident quality of life. Budapest joins cities like Barcelona, Amsterdam, and Berlin in grappling with the challenges created by short-term rental platforms, though its approach is notably more aggressive than most.
For travelers, the practical takeaway is straightforward: when booking accommodation in Budapest from 2026 onward, pay attention to the specific district where a property is located. If a listing appears in District 6 after January 1, 2026, it’s either not a legitimate rental or it’s a licensed hotel-type establishment rather than a residential apartment. Reputable booking platforms will likely remove District 6 residential listings, but staying vigilant helps avoid potential complications.
For residents and property investors, the coming months represent a period of adjustment and opportunity. Long-term rental demand in District 6 may actually strengthen if the area becomes quieter and more residential, potentially attracting families and professionals seeking central locations without the constant churn of tourist neighbors. Property values might stabilize or even appreciate if the district’s residential character strengthens.
Budapest remains one of Europe’s most beautiful and visitor-friendly capitals, and one district’s regulatory change won’t fundamentally alter that reality. The city offers abundant accommodation options across its diverse neighborhoods, each with distinct character and appeal. District 6’s decision reflects a community choosing to prioritize local residents over tourist revenue, a choice that other neighborhoods may or may not embrace. Whatever direction Budapest’s accommodation landscape takes, the city’s thermal baths, stunning architecture, vibrant cultural scene, and legendary nightlife will continue drawing visitors from around the world.
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