Budapest's District I is asking local residents whether short-term property letting should be banned completely or allowed to continue under additional restrictions.
The vote comes as the moratorium on registering new short-term accommodation in Budapest is due to expire at the end of 2026, leaving District I to decide what rules should apply afterwards.
There are currently more than 400 licensed private accommodation providers and other typically commercially operated accommodation establishments in the district. The issue is particularly important around Buda Castle and its surrounding area, where tourism plays a significant role.
What Are Residents Being Asked?
Residents aged 18 or over with a permanent registered address in District I can take part in the vote.
They are being asked two questions: whether they support a complete ban on Airbnb and other short-term accommodation, and, if there is no ban, whether the municipality should instead impose conditions on short-term accommodation.
That creates two very different possible outcomes for property owners.
A complete ban would remove short-term letting as an option for affected properties. Alternatively, the municipality could allow it to continue subject to additional rules.
District VI Has Already Taken the Ban Route
District I is not the first central Budapest district to consider whether short-term accommodation should continue.
Terézváros, District VI, introduced a ban on short-term private accommodation from 1 January 2026 following its own local vote.
That makes the District I decision particularly important.
If residents support a ban and the municipality follows that approach, another important central Budapest district could move towards the Terézváros model.
If residents reject a ban but support additional conditions, District I could instead develop a different approach to regulating short-term accommodation.
What Could This Mean for Property Owners?
For owners already operating short-term accommodation in District I, the outcome could directly affect how they are able to use their property in future.
Owners considering buying an apartment specifically for short-term letting should also be careful about making investment calculations on the assumption that today's rules will continue.
This matters for investors looking across Budapest as well.
Different districts can take different approaches to short-term accommodation. Two similar apartments in neighbouring districts could therefore be subject to very different rules.
“There has always been more to choosing an investment property than simply comparing the purchase price and potential rental income,” says Alex Markus, Chief Executive, City-Lets Ltd. “Owners now also need to understand what the district allows and how those rules could change.”
For investors considering short-term accommodation, the district in which they buy may increasingly determine whether they can operate the property that way at all.