In short: since 1 January 2026, private apartments in Budapest’s District VI (Terézváros) can no longer be let short-term to tourists. The ban followed a local referendum and was upheld by Hungary’s Supreme Court (the Kúria) in November 2025. Long-term letting is unaffected, and other central districts use caps rather than bans.
If you own, or plan to buy, an investment apartment in central Budapest, this changes the maths. Here is what you need to know.
What exactly is banned?
District VI set the number of days a private home may be let as short-term accommodation to zero. That covers the typical Airbnb or Booking.com flat let by the night or week. It does not ban hotels, licensed guesthouses or long-term tenancies.
The district enforces the rule. Flats under investigation can be marked with an official notice on the door, and owners face fines.
How did it happen?
| Date | Step |
|---|---|
| September 2024 | District VI residents vote for a ban in a local referendum |
| Autumn 2024 | The district council adopts the ordinance, effective 1 January 2026 |
| 11 November 2025 | The Kúria upholds the ban as lawful |
| 1 January 2026 | The ban takes effect |
Sources: Budapest Times, budappest.com.
How do other districts compare?
| District | Short-term rental rule (2026) |
|---|---|
| V – Belváros-Lipótváros | Cap per building since 2020, plus house-rule requirements |
| VI – Terézváros | Banned for private flats since 1 January 2026 |
| VII – Erzsébetváros | Allowed under licensing; the mayor favours regulation over bans |
| VIII – Józsefváros | District-wide cap of about 3.5% of residential floor space |
Rules keep changing. Always check the district’s current ordinance and the building’s house rules before you buy for short-term letting.
What it means for buyers and investors
1. Long-term rental demand is the core case
District VI is still one of the most sought-after addresses in Budapest. Andrássy Avenue, the Opera, St Stephen’s Basilica and the Nyugati business area are all on the doorstep. Expats, diplomats and executives want to live there, and they rent for 12 months or more. Large, well-finished apartments suit them best.
2. Expect more supply in the short run
Some former short-term flats are being sold or moved to long-term letting. That can create buying opportunities for patient investors, while slowing rent growth for smaller, tourist-style units.
3. Quality matters more than ever
Long-term tenants pay for space, light, quiet bedrooms, modern kitchens and good buildings. Premium, renovated apartments keep their value best when the Airbnb premium disappears.
4. Price the investment on long-term rent
Gross long-term yields in central Budapest are commonly quoted at around 4.5–5%, higher for smaller units in Districts VIII and IX. If a seller’s numbers rely on nightly rates in District VI, treat them with caution.
Is District VI still a good place to buy?
For owner-occupiers and long-term investors, yes. The ban protects the district’s residential character, which supports long-term value. For short-term letting strategies, look instead at licensed accommodation, or at districts where it remains allowed, and check the cap first.
Our own projects reflect this. Our Podmaniczky Street rooftop development in District VI is designed for owner-occupiers and long-term tenants, with large layouts and private outdoor space.
Frequently asked questions
Can I still rent my District VI apartment to tourists?
Not as a private flat. Only licensed accommodation businesses that meet the relevant rules can operate.
Does the ban affect long-term rentals?
No. Letting for residential use, typically 12-month leases, is unaffected.
Will other districts follow?
It is an open question. District V and VIII already use caps. Watch each district’s decisions before buying.
Get advice before you buy
We help international buyers choose apartments that work under the 2026 rules. Read our guide to buying in Budapest as a foreigner, compare districts in our district guide, or contact our team.
General information only, not legal advice. Check current district ordinances with your lawyer.
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