Budapest District Votes to Ban Short-Term Rentals – Reuters

By Krisztina Fenyo and Gergely Szakacs

BUDAPEST – A district in Budapest is currently conducting a two-week referendum to consider a ban on short-term rentals, marking a potential first for one of Europe’s most sought-after tourist locations.

Statistics from Eurostat indicate that nearly 719 million guest nights in the European Union last year were booked through online platforms such as Airbnb and Booking, with Paris recording over 19 million guest nights, the highest among EU capitals. In Central Europe, Budapest stood out with 6.7 million guest nights, surpassing Vienna, Prague, Warsaw, Krakow, and others.

Tamas Soproni, the mayor of the Budapest district holding the referendum, which commenced on Monday and will conclude on September 15, expressed that the city’s popularity warrants gauging local sentiment on the effects of short-term rentals on housing affordability and overall quality of life.

"We cannot remain passive and wait for changes to occur," noted Soproni, who leads Budapest’s picturesque sixth district. "While we should appreciate the era when many can enjoy foreign vacations, we must also recognize that our tourism can make these cities unlivable."

If approved, the ban would be implemented at the beginning of 2026. The referendum’s outcome may have broader consequences, as Prime Minister Viktor Orban’s administration is considering regulations on short-term rentals, which officials claim exacerbate housing shortages and price spikes.

A local real estate platform highlighted that a ban in the sixth district, where property prices exceed the Budapest average by 22%, could temporarily lower long-term rental rates. However, opponents argue that such a prohibition would negatively impact earnings for apartment owners as well as nearby cafes and restaurants that primarily serve tourists.

In a related move, Barcelona announced plans in June to prohibit tourist apartment rentals by 2028 in an effort to tackle rising housing costs and improve livability for residents.

In Central Europe, the Czech Regional Development Ministry is proposing changes in legislation that would require all properties listed on online rental platforms to register through a centralized electronic system to facilitate tax collection. This measure, pending parliamentary approval, would take effect in mid-2026 and enable municipalities to limit the number of rental days and specify periods during which rentals are prohibited.

Local governments in Poland’s tourist towns like Sopot and Krakow are calling for stricter regulations on holiday rentals, though new legislation has yet to be enforced.

In Budapest’s sixth district, residents hold varying opinions. Gabor Siklosi supports increased regulations but is against an outright ban. Meanwhile, a resident named Matild, who preferred not to share her surname, noted that short-term rentals have caused issues in the area. "Visitors often lack consideration for quiet, order, or cleanliness," she said. "They come for a short time and leave chaos behind."