Industry players warn that market trends and experience suggest at least a third of Airbnb rentals in Budapest are being offered illegally. As a result, rental prices in the city remain stuck at 2022-2023 levels.

Plenty of rentals, not enough tourists

According to an article by Index, a government-imposed Airbnb ban effective through 2026, combined with a total moratorium in Budapest’s District VI (Terézváros), has led to an influx of new rental listings in the city. However, the boom in supply has outpaced the growth of tourism in the capital. While visitor numbers to Budapest continue to rise, the total number of nights tourists spend in the city hasn’t kept up with the surge in available accommodations.

Népszava reported a few days ago that while there were only 13,000 Airbnb listings in Budapest in 2024, that number has risen to 16,000 this year. Most of the new properties came online this spring, as owners completed renovations and developments promised in quality certification applications submitted before the 31 December 2024 deadline.

A third of Airbnb apartments are unlicensed

Balázs Schumicky, president of the Hungarian Short-Term Rental Association, says prices have remained frozen at 2022-2023 levels due to growing supply outpacing demand. He also claims the number of unlicensed rentals has surged. Today, roughly one out of every three listings is likely operating without a permit, which is why available rentals can still be found during major events like Formula 1, the Sziget Festival, and other peak tourism periods.