Budapest’s campaign to regulate short-term apartment rentals is continuing, with Józsefváros (District VIII) becoming the second district of the Hungarian capital to introduce strict limits on Airbnb-style accommodation.
The district council has approved a new regulatory concept that would impose restrictions on short-term rentals at three different levels: across the district, within individual neighbourhoods, and inside residential buildings. The proposed measures aim to strike a balance between the interests of local residents and property owners while addressing growing concerns about housing availability and quality of life.
Three-tier system to limit Airbnb growth
Under the approved concept, short-term rental properties will be capped at 3.5% of the district’s housing stock. The limit effectively freezes the current number of Airbnb-style apartments, meaning that new licences could only be granted if they fit within the available quota.
Even stricter rules are planned for some of the district’s most popular areas. In the Palace Quarter (Palotanegyed) and Corvin Quarter, the proportion of short-term rentals would be limited to 5%, reflecting the particularly high concentration of tourist accommodation in these neighbourhoods.
As 24.hu writes, the regulation would also apply at building level. In apartment blocks, short-term rental units could occupy a maximum of 20% of the total residential floor area. Notably, this calculation would be based on the size of flats rather than simply the number of units.
Greater power for residents
One of the most significant elements of the proposal is the requirement for approval from condominium communities before any new short-term rental property can begin operating.
Residents would also gain the ability to take action against problematic accommodation providers. If a rental repeatedly disrupts the community, the building’s assembly could withdraw its consent and notify the local government, which could then refuse to allow the property to continue operating.
Existing short-term rentals, however, would generally be allowed to remain in business unless a condominium formally objects to their operation. Operators would also be required to display contact details on the property door, making it easier for residents to report issues.
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Following Terézváros’ example
The move comes as Hungary’s national moratorium on registering new short-term rental properties is due to expire at the end of this year. District leaders say a predictable regulatory framework is needed before the freeze ends.
Józsefváros is not the first Budapest district to act. Neighbouring Terézváros (District VI) previously voted to effectively ban Airbnb-style rentals from 1 January 2026, becoming the first district in Hungary to take such a step. The measure survived a legal challenge and has since become a landmark case in the debate over tourism and housing in the capital.
The detailed regulations of short-term apartment rentals, like Airbnb, for Józsefváros are expected to be finalised in October and could enter into force on 1 January 2027.
