Budapest Holds Referendum on Short-Term Rentals

By Krisztina Fenyo and Gergely Szakacs

BUDAPEST (Reuters) – A Budapest district is conducting a two-week referendum on a potential ban of short-term rentals, the first of its kind in one of Europe’s top tourist destinations.

Eurostat figures indicate that nearly 719 million guest nights in the EU were booked through online platforms like Airbnb, Booking, Expedia, and Tripadvisor last year, with Paris leading EU capitals with over 19 million guest nights.

Budapest was central Europe’s most popular for short-term stays, recording 6.7 million guest nights, surpassing Vienna, Prague, Warsaw, and Krakow.

Tamas Soproni, the district’s mayor, stated that the city’s popularity has warranted local input on the effects of short-term rentals on housing affordability and quality of life. “You cannot sit idle and just wait for something to happen,” said Soproni, noting that while many can now afford overseas holidays, some cities may become increasingly uninhabitable due to tourist influx.

If approved, the ban would take effect starting 2026. The vote’s outcome could influence wider regulations, as Prime Minister Viktor Orban’s government is considering measures addressing the housing shortage exacerbated by short-term rentals. According to real estate website ingatlan.com, a ban in the sixth district—where apartment prices exceed Budapest’s average by 22%—could temporarily lower long-term rental prices.

Opponents argue that such a ban would harm revenues for apartment hosts and local businesses that cater to tourists.

In a similar move, Barcelona announced a ban on tourist-related apartment rentals by 2028, aiming to tackle soaring housing costs and ensure the city remains livable for residents.

The Czech Regional Development Ministry has proposed legislation requiring all online rental properties to register via an electronic platform for easier tax collection, with provisions for municipalities to limit rental days.

Local authorities in Poland’s Sopot, Krakow, and other tourist areas have called for stricter rental regulations, though new laws are pending.

In Budapest’s sixth district, residents’ opinions vary. Gabor Siklosi supports more restrictions but not a complete ban, while Matild, preferring anonymity, expressed concerns about the disorder caused by short-term renters, stating, “People going out and about have no interest in keeping quiet, order or cleanliness. Today they are here, and they will be doing their business somewhere else tomorrow.”