Central Europe’s most popular city break destination looks to ban new Airbnb properties

The Hungarian government is seeking to impose a temporary ban on new Airbnb licences and to raise taxes on short-term apartment rentals in Budapest.

Economy minister Marton Nagy unveiled the plans just a month after locals of the capital’s sixth district voted to ban short-term rentals from 2026, the first such ban in one of Europe’s most popular tourist destinations.

Some residents in tourist hotspots on the continent blame short-term lets for driving up property prices.

Budapest was crowned the most popular city for short-term stays in 2023 with 6.7 million guest nights, according to Eurostat. It is placed ahead of Vienna, Prague, Warsaw and Krakow.

Airbnb prices in the city range from cheap £60 stays for a room to £120 for entire apartments for two nights this weekend. One place with a hot tub in the city centre is available for £75 per night.

At a press briefing, Mr Nagy warned the holiday rentals could face restrictions, adding: “We are thinking about a possible moratorium and a tax hike in Budapest.

“The Airbnb market will change, and it is sure that it cannot grow further.”

open image in gallery

The minister claimed that negotiations were underway with trade organisations in the tourism industry over the government’s proposed new rules. But he insisted the changes would not affect short-term rental properties outside the capital.

In Budapest’s sixth district called Terezvaros, 54 per cent of voters backed a ban on short-term rentals from 2026 with a 21 per cent turnout in mid-September. 

In Barcelona, local officials have also taken a drastic approach with Mayor Jaume Collboni announcing that it would not renew any tourist apartment licenses after 2028.

And in the UK, the government is seeking to address the issue in central London, which is the biggest hotspot of short-term lets.

Ministers have announced changes so landlords have to apply for consent from their local council to turn their home into a short-term let. However, the rules do not apply to those renting out their main home for fewer than 90 nights a year.