Residents of Terézváros, a central district in Budapest, have voted to ban Airbnb-style short-term rentals in a move that echoes growing discontent with overtourism across Europe. The vote, held earlier this month, saw more than 6,000 participants, with 54% in favor of the ban, despite a relatively low turnout of 20.52%. The decision marks a first for the Hungarian capital and comes into effect on January 1, 2026.
Terézváros, home to some of Budapest's most iconic tourist sites like the Parliament, Chain Bridge, and Buda Castle, has been a hotspot for short-term rentals, attracting millions of visitors annually. However, residents have grown increasingly frustrated with the strain tourism places on local infrastructure and the surge in property prices driven by short-term rentals.
The ban comes at a time when overtourism is becoming a significant issue in many European cities. While tourism generates income for local economies, critics argue that too many visitors degrade historical sites, overwhelm services, and push housing prices beyond the reach of locals. In Budapest, house prices have tripled since 2015, and in Terézváros, the average price per square meter for premium properties now stands at around HUF 1.43m (€3,630).
According to Eurostat, short-term rental bookings through platforms like Airbnb and Booking.com saw a 20% rise in 2023, with Budapest leading in Central Europe, recording 6.7 million guest nights. While these rentals have provided a boost to the economy, residents of Terézváros have had enough, leading to what local officials called an "interesting democratic experiment."
Mayor Tamás Soproni, of the centrist Momentum Movement, acknowledged the economic contributions of short-term rentals but emphasized that the ban reflects the will of the district's residents. "The next step is to formalize the people's decision into law," Soproni said, adding that businesses would have time to adjust to the change before it takes effect in 2026.
While some fear that the ban could spread to other parts of Budapest, leading to job losses and reduced tax revenue, proponents argue that the move is necessary to preserve the quality of life for locals. The debate over short-term rentals continues to rage across Europe, with cities like Barcelona and Paris also cracking down on Airbnb-style accommodations in response to similar concerns.
For now, Terézváros stands as a case study in the growing tension between tourism and local living conditions—a balance many cities are struggling to maintain.
