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BREAKING – Airbnb crackdown: Budapest’s party quarter bans short-term rentals
A regulation that effectively makes it impossible to license new private accommodation – including Airbnb rentals – in residential buildings came into force in Erzsébetváros in September, according to a report by Spabook.net based on a reader tip. The change was introduced by the district municipality as part of a package of regulations, without any public communication, meaning it has remained almost entirely unnoticed until now.
New Airbnb licences practically eliminated
Municipal Decree 33/2025. (IX.24.) amended Erzsébetváros’s building regulations and stipulates that opening a new commercial accommodation facility – such as an Airbnb – in a residential building is practically impossible without meeting highly restrictive criteria, Spabook.net reports.
Existing private accommodation providers with valid permits may continue operating, but new entrants are essentially blocked from joining the market.
Under the new rules, a commercial accommodation facility may only be established in a residential building if:
- it operates exclusively on the ground floor,
- it occupies no more than 10% of the building’s residential floor area,
- every room meets strict size requirements,
- every room has its own private bathroom,
- in the case of guesthouses, at least six rooms and a separate breakfast area are required.
Most multi-storey residential buildings in the district are unable to meet these conditions.
Terézváros shows that a legal and market shift may follow
The impact of the tightening in Erzsébetváros could be substantial. In Terézváros, a referendum previously approved Airbnb restrictions, after which property prices began to fall. In November, Hungary’s Supreme Court ruled that the ban is proportionate and does not violate the freedom to conduct business, as it protects residents’ peace and quiet.
As a result, short-term rentals will no longer be allowed in Terézváros from 1 January 2026.