The Airbnb ban didn’t stop them: Budapest’s largest condo finds a loophole!

The referendum to ban Airbnb in Terézváros has brought significant changes to local accommodation services, particularly in the Central Passage condominium. Residents and property owners in the building are adapting to the new regulations with innovative solutions that are set to impact the district’s tourism industry and community dynamics.

Situated between Király Street and Paulay Ede Street, the Central Passage condominium was built in the mid-2000s. The seven-storey, 270-apartment complex was developed by a Spanish company that went bankrupt following the 2008 economic crisis. The building then experienced a prolonged period of stagnation until the early 2010s when property service companies began to emerge.

Over time, one company acquired the vacant retail spaces and part of the car park, assets which have since become central to the operation of accommodation services. Today, most of the apartments are operated by 7Seasons Apartments, which has established a reception in the building and has extensive experience in the short-term accommodation market.

The Airbnb situation in Terézváros

In autumn 2023, residents of Terézváros voted in a referendum to ban Airbnb and similar services in the district. This decision posed a significant challenge for Central Passage, where more than 88% of apartments were used for private or other short-term accommodations. Under the ordinance, owners were faced with a choice: cease offering accommodation or convert their properties into commercial accommodations.

In early 2024, Central Passage’s owners convened a general meeting, where the majority voted to continue using the apartments as Airbnb accommodations. This decision necessitated several adaptations, including installing a fire alarm system, operating a reception, and providing breakfast for guests. A large majority of owners supported these changes, enabling the complex to comply with the stricter regulatory framework.