Airbnb effect: Budapest apartment prices start dropping after Airbnb ban

Although short-term rentals, including Airbnb, won’t be banned in Budapest’s District VI (Terézváros) until January 2026, the effects of the September vote are already being felt in the local real estate market, according to László Balogh, chief economic analyst at Ingatlan.com.

Effect of Airbnb ban already felt in Budapest

Since August, the price per square meter for apartments smaller than 50 square meters—which are commonly used as Airbnb rentals—has dropped by about 5%, now averaging HUF 1.037 million (EUR 2,590), Népszava reports. At the same time, the number of properties for sale in this segment has risen sharply from 130 to nearly 200, marking a 50% jump in just three months. In contrast, neighbouring District VII has seen a slight increase in prices during this period.

Terézváros, where short-term rentals are most concentrated, has 2,700 properties listed on Airbnb, accounting for 8-9% of the district’s housing stock. Across all of Budapest, there are around 15,000 Airbnb listings, making up about 1.5% of the city’s total property market.

Photo: depositphotos.com

Experts had already anticipated two options for owners of these properties: either sell them or switch to long-term rentals. This shift could slow price growth in the affected areas, possibly even dampening the expected rise in housing prices in the coming year. The ripple effects could also be felt in nearby districts and potentially across the city, where overall price increases may be tempered.

Another surge in prices expected next year?

However, Balogh also pointed out another factor influencing the market: next year, the Hungarian government will pay out around HUF 1,300 billion (EUR 3.25 billion) in bond yields, some of which is likely to flow into real estate, particularly into highly attractive downtown properties. This influx of capital could neutralise the current Airbnb-related price drops, potentially leading to another surge in property prices.

There’s still a lot of uncertainty surrounding Airbnb in Budapest. With no local regulations in place and no clear direction from the government, the situation remains fluid. Lajos Böröcz, Secretary General of the Hungarian Hospitality Employers’ Association, emphasised that even in a worst-case scenario, where Airbnb rentals become unviable, Budapest’s diverse accommodation offerings would still meet the needs of most visitors. However, the sector might lose those travellers who are specifically drawn to Airbnb properties and unwilling to settle for alternatives.

UPDATE

BREAKING NEWS! Another huge tax hike from the Orbán cabinet: this time it’s on short-term rentals in Budapest

Read also:

• End of flourishing tourism in Budapest? Airbnb moratorium, stricter rules, tax increase to come! – UPDATED
• 26 professional associations unite in opposition to Hungary’s full short-term rentals ban

Featured image: depositphotos.com