Good news for property buyers: Real estate prices decline in the heart of Budapest

Budapest’s 6th district, Terézváros, has long been a coveted destination for both Hungarian and foreign investors, as well as homebuyers. Its central location places it within walking distance of many of the Hungarian capital’s iconic landmarks. With a reputation for clean and relatively safe public spaces, the district has remained a prime choice for those seeking property. However, a recent referendum banning short-term rentals, including Airbnb, has begun to reshape the local real estate market, leading to a notable decrease in real estate prices.

Real estate prices start to decline following Airbnb ban

Last autumn, Budapest’s 6th district, Terézváros, held a landmark referendum, posing a question to residents: should short-term rentals be banned or allowed to continue? The liberal mayor, Tamás Soproni, argued that Airbnb had placed an unsustainable burden on the community. He stated that investors had bought up nearly all available properties, converting them into short-term rental units. This trend, Soproni noted, led to a sharp rise in real estate prices, making it increasingly difficult for families to settle in the district. Furthermore, he suggested that the proliferation of short-term rentals had significantly contributed to the district’s declining population.

Despite a modest turnout of 20.5%, the referendum ultimately resulted in a ban on all short-term rentals in Terézváros, effective from 1 January 2026. Early indicators suggest that this policy is already having an impact on the local property market and the real estate prices. According to figures from ingatlan.com cited by 24.hu, the average price per square metre for apartments under 50 square metres decreased by 5% last autumn, settling at HUF 1.037 million (approximately €2,507).