Following the pivotal Airbnb vote in September, Terézváros is experiencing a noticeable shift in its housing market. Although the restriction on short-term rentals in Budapest’s District VI will be enforced in January 2026, local media reports indicate the effects are already emerging.
His analysis reveals a downward trend, with smaller apartments—typically favoured for Airbnb use—experiencing a price drop of about 5%, now hovering around 1.037 million HUF per square meter. Concurrently, the supply of these properties on the market has surged from approximately 130 to nearly 200, marking a significant 50% increase in less than three months. Comparatively, neighbouring District VII has seen a slight price uptick over this period.
Property Density and Market Dynamics
- The prime concentration of Airbnb properties in Budapest is in Terézváros, with 2,700 homes dedicated to this service, accounting for around 8-9% of the district’s total housing stock.
- Across Budapest, there are about 15,000 Airbnb listings, making up 1.5% of the city’s property portfolio.
The recent vote has left many property owners contemplating selling or transitioning to long-term rentals. This shift could decelerate price increases now and potentially impact future hikes, echoing a ripple effect on the surrounding and outer districts’ markets.
Potential Counterbalances and Uncertainties
- A significant factor to consider is the expected payout of nearly 1,300 billion HUF in government bonds next year. A portion of this capital will likely flow into the real estate market, especially targeting the lucrative downtown properties, potentially offsetting the current Airbnb effect.
- There are ongoing uncertainties surrounding Airbnb, with no local regulations finalized and the government yet to announce specifics. In an extreme scenario where Airbnb operations face severe restrictions, Budapest could still accommodate visitors through its diverse lodging options, according to Lajos Böröcz from the National Association for Tourism and Hospitality Employers.
Despite the current uncertainty among property owners following the Airbnb vote, there is reason for optimism. If conditions stabilize and market adjustments follow, the anticipated financial influx could rejuvenate property values, effectively neutralizing the current downturn and paving the way for future growth.
