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.

Real estate prices started to decrease in Budapest's heart
The heart of Budapest: Terézváros. Photo: FB/Soproni

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).

The number of available apartments is on the rise

The number of available apartments in this category has also risen dramatically, jumping from 130 to 200 within just three months—a significant 50% increase. This surge in supply is likely to provide more opportunities for buyers in the district, particularly those previously priced out of the market.

Real estate prices started to decrease in Budapest's heart
Csengery Street in Terézváros. No more Airbnb. Photo: FB/Soproni

As of August, according to data shared by Mayor Soproni, there were 468 short-term rental units in Terézváros—representing 8% of all apartments in the district. Prior to the referendum, one in five Airbnb listings in Budapest was located in this neighbourhood. With the ban now in effect, this figure is expected to drop to nearly zero, presenting both opportunities and challenges for the district and the broader Hungarian tourism sector.

Read also:

  • Shocking Eurostat data shows how real estate prices skyrocketed in Hungary between 2010 and 2024

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