Budapest’s 8th district (Józsefváros) is set to open its proposed regulatory package on short-term rentals to public consultation, with the stated aim of curbing and rendering more transparent the operation of platforms such as Airbnb, the local council announced to MTI on Tuesday. That comes after a full ban imposed by the 6th district of Budapest in 2026.
The number of short-term rentals can be significantly reduced in the city centre
The district seeks to establish a framework “that strikes a balance between housing considerations, the interests of local communities, and the economic impact of tourism.” Under the proposal, limits on the proportion of short-term rental properties would be determined across three levels—district, neighbourhood, and individual residential buildings.
According to the draft measures, no more than 4 per cent of flats within the district could be designated for short-term letting. Different neighbourhoods would be subject to varying restrictions. In the inner districts, the intention is to reduce the current share of short-term rentals, while in outer areas—where such accommodation is presently absent—the rules would be comparatively more permissive.
At the level of individual apartment blocks, caps would also vary by neighbourhood, ranging between 10 and 20 per cent, in order to ensure that owner-occupiers remain in the majority.
Existing Airbnbs may remain
The municipality further proposes that the establishment of short-term rental units be contingent upon the consent of the condominium, and that all such properties display a notice at their entrance detailing the operator’s contact information alongside other official particulars.
It was emphasised that the proposals would not apply retroactively. Existing, duly authorised rentals in inner neighbourhoods—such as the Palace Quarter and Corvin Quarter—would not be required to cease operations, though no new units would be permitted there.
Residents of the district are invited to submit their views on the proposals until 31 May. Two public forums—one for condominium representatives and another for residents—will also be held on 20 May and 26 May respectively, at 13 Horánszky Street.
Budapest’s 6th district banned Airbnb earlier
Following a 2024 plebiscite, Budapest’s 6th district (Terézváros) banned short-term rentals entirely, despite concerns that such a move would hinder the city’s growing tourism sector. Experts argued that tourists who book short-term rentals would not switch to hotels in Budapest; instead, they would choose to visit another regional capital.
Decline in rental prices in Hungary ends as rents rise again, Airbnb impact limited
As the local government leadership supported a full ban and launched a campaign against Airbnb, residents voted in favour of the measure by a narrow margin. The ban came into effect this January.
In the 5th district, the local council has introduced a regulation limiting Airbnb rentals to a maximum of 20% of apartments within any residential building.
In other districts, there are currently no specific restrictions on Airbnb. However, it is worth noting that the government has imposed a moratorium on issuing new Airbnb permits in Budapest until 31 December 2026.
Meanwhile, taxes on Airbnb owners have increased fourfold, making it less profitable to operate such rentals in the city. Despite these restrictions, rental prices in the capital have continued to rise, even as many former short-term rentals have entered the long-term rental market.
If you missed our previous articles concerning Airbnbs in Hungary:
Strangers moving into your Airbnb? Budapest owners warn of a growing security nightmare
