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Atmospheric residential flats in Budapest, Source: Depositphotos

Budapest is the latest European city to ban short-term rentals

Budapest is the latest European city to ban short-term rentals

The restriction on this tourism segment will enter into force in 2026 in one of the city’s central districts

It looks like the Hungarian capital, Budapest, is also souring on incessant tourism after the publishing of voting results yesterday which showed that residents of the central District VI have narrowly voted to ban short-term rentals with effect from 1 January 2026.

So far, this represents only one small part of the city, however, Terézváros (Theresa city), as District VI is officially known, is also one of the most densely populated ones so the impact of Airbnb-style lets there is felt more acutely.

After the vote was concluded, according to Euronews, Mayor Tamás Soproni from the centrist political party Momentum Movement said: "The next step is to bring the will of the people of Terezváros to the representative body, and we will create a decree on their decision."

And despite the small size of the district and the fact that support for the ban was only confirmed with a slight majority of 54%, the news is important because it may be the foretelling of things to come across the entire city or country.

Will the ban spread to all of Hungary?

Apparently, the conservative government of Victor Orban has been mulling for some time the idea of instituting restrictions on short-term rentals for tourists. Thus, the small district referendum may reverberate into the higher echelons of government, as the country’s economy minister has commented that this type of accommodation model contributes to a housing shortage and unaffordability for local residents.

Budapest is the most popular destination among Central European capitals when it comes to short-term rentals thanks to its lower prices compared to other powerhouses in the region, such as Vienna and Prague.

The result of the district vote means that, at least partially, Budapest will be joining the likes of Barcelona in taking the approach of banning the business practice of private short-term letting of properties outside of the hospitality sector.

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