Budapest is the latest European city to ban short-term rentals

Starting in 2026, a limitation on a specific tourism sector will be enforced in a central district of a city. Budapest, the Hungarian capital, has shown signs of discouraging excessive tourism following the recent voting outcome. The residents of District VI narrowly agreed to prohibit short-term rentals from January 1, 2026.

Although this decision affects only a small area of the city, Terézváros, also known as District VI, is highly populated, intensifying the impact of Airbnb-style accommodations. Mayor Tamás Soproni of the centrist party Momentum Movement stated that the next step is to implement the residents’ decision through an official decree.

Despite District VI’s limited size and the ban receiving just a slim majority of 54%, the significance of this news lies in its potential implications for the entire city or country. Could this prohibition extend to all of Hungary? The conservative government, led by Victor Orban, has been considering restrictions on short-term rentals due to concerns about housing shortages and affordability for locals.

Budapest is a top choice for short-term rentals in Central Europe, offering more affordable prices compared to cities like Vienna and Prague. With the district’s decision, Budapest may follow in the footsteps of Barcelona by restricting private short-term property rentals outside the traditional hospitality sector.