Terézváros Airbnb Ban: 60% Fewer Listings, 34% More Rentals

Budapest's District VI (Terézváros) banned short-term rental permits in January 2024. One year later, the number of Airbnb listings in the district dropped 60%, according to real estate portal Ingatlan.com. Long-term rental listings rose 34% over the same period, and district-level rents stopped climbing. The data gives other central districts a real-world case study on how a ban reshapes the local housing market.

Terézváros Ban Delivers 60% Airbnb Decline

The ban itself is straightforward. District VI prohibited new permits for short-term rentals effective January 2024. The result: the number of short-term units fell from roughly 1,200 to about 480. That 60% reduction is the sharpest decline in any Budapest district. A citywide moratorium on new Airbnb permits remains in effect until the end of 2026. Terézváros went further by enacting a permanent ban.

The revenue gap between short-term and long-term letting remains wide across central districts. In District V, an Airbnb unit generates average monthly revenue of 725,000 forints, while a long-term lease brings about 350,000 forints. Similar spreads exist in Districts VI through IX. The simple interpretation: the ban eliminates a lucrative income stream. The better market read: the supply shift matters more than the price premium. Terézváros data shows that targeting supply volume – not just price – can alter market dynamics.

Long-Term Rental Supply Rises 34% as Rents Stabilize

Ingatlan.com's dataset quantifies the supply response. Before the ban, District VI hosted approximately 1,200 short-term rental units. After the ban, that figure dropped to about 480. At the same time, the number of traditional rental listings increased by one-third. Rent per square meter in the district stopped rising, implying that the supply addition absorbed pricing pressure.

The mechanism is clear. Properties that left the short-term market returned to the long-term rental pool. The 34% increase in listings is not proportional to the 60% decline in Airbnb units because some owners sold or vacated properties. Still, the net effect added measurable supply to a market where vacancy rates are low and demand is high.

Ripple Effect on Other Budapest Districts

Seven of Budapest's eight central districts have either enacted or proposed restrictions on short-term rentals. District VII (Erzsébetváros) has the most short-term rental concentration in the city with more than 3,200 units. District VIII (Józsefváros) just opened its own regulatory proposal for public consultation. Ingatlan.com data showed that 80% of Budapest's nearly 9,800 short-term apartment-hotels sit in six central districts, where they represent over 4% of the total housing stock.

If other districts follow Terézváros's path, the combined effect could shift a material share of units back to the long-term market. That would ease what the city considers a rental crisis. For property owners, the trade-off is stark: short-term guests generate two to three times more revenue than tenants. Regulatory risk is rising. The District VIII consultation will signal how far other central districts will go.

For investors and property owners with exposure to Budapest rentals, the key decision point is whether to exit short-term strategies preemptively or wait for regulatory clarity. Ingatlan.com's analysis indicates that the shift from short-term to long-term rentals may continue if more districts adopt restrictions. The citywide moratorium runs through 2026. Individual districts can accelerate their own rules. That timeline gives the market a window to adapt – and gives policymakers a live experiment in housing supply management.

For additional context on how housing market shifts affect broader investment strategies, see stock market analysis.