Real Estate Hungary: Local Hungarian referendum could change Airbnb market

From 2026, real estate investors in Budapest will most likely have to change the use of their property if they rent it out as Airbnb for a short period of time. This follows a local referendum in the Terézváros district of Budapest in which residents rejected Airbnb. The Ecovis consultants explain the consequences of the referendum.

The referendum, which took place between 2 and 15 September 2024 asked voters to decide on the question “Do you agree with the ban on the renting out of apartments in condominiums as Airbnb accommodation in the district?” This is a question that has been raised in other countries, where short-term rentals have greatly transformed the real estate market in areas of cities that are mainly tourist destinations.

The reasons for the referendum

There has been serious tension between local residents seeking to achieve a liveable residential environment and affordable housing on the one hand, and private and institutional investors seeking to capitalise on the globalisation of tourism. The population of some areas has decreased significantly since this type of use of the apartments began and investors have bought up the majority of apartments. This means that real estate prices are now very high for local residents. One local municipality saw the problem of the high prices and the negative changes to the residential environment and initiated the referendum to test public opinion.

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György Zalavári, LL.M attorney at law, ECOVIS Zalavári Legal Hungary, Budapest, Hungary

The results of the voting

6,083 citizens took part in the referendum in Budapest district, a turnout of 20.52%. Of these, the majority – 53.67% – voted to ban Airbnb-type short-term rentals in the district. The responsible municipality must now create the necessary ordinance to ban short-term rentals in the district as of 1 January 2026.

Will the local real estate market change?

This decision of direct democracy will probably change the real estate market in the area from 1 January 2026. Investors who have been using their properties on a short-term rental basis until now will have to change the use of those properties by that date.

Some may switch to long-term rental, which will in turn bring lower income and profits and thus a longer tenure. It is likely that many properties will also be sold by investors, and this may bring about a fall in property prices, experts say.

According to political statements, the above regulation may also be introduced in several other Budapest districts and other municipalities. This would force tourists to use hotels and other accommodation instead of the apartments they used to rent.

For further information please contact:

György Zalavári, LL.M attorney at law, ECOVIS Zalavári Legal Hungary, Budapest, Hungary
Email: gyorgy.zalavari@ecovis.hu