Budapest Considers Banning Short-Term Rentals in District I: What Is Known as of Early February 2026
The information became public following statements by the deputy mayor of District I, who pointed to the need to further discuss short-term rental regulation and the potential coordination of decisions among Budapest’s central districts. At this stage, the matter remains at the level of discussion and scenario planning, rather than an adopted regulatory decision.
📊 Why the Issue Has Gained Renewed Attention. Interest in a potential ban in District I has intensified against the backdrop of early statistical data from District VI (Terézváros), where a short-term rental ban came into force on January 1, 2026. This is the first district in Budapest where such a measure has been fully implemented.
📈According to Hungarian sources and rental market data:
— the median long-term rental rate in District VI in January 2026 stood at HUF 282,500 per month, approximately 1% lower year-on-year;
— the supply of long-term rental listings increased by around 28% compared to January 2025.
These figures are currently cited in public discussions as evidence that restricting short-term rentals may increase the supply of housing for permanent residents and ease pressure on the rental market.
🏠Real Estate Market Conditions in District I. Castle District (District I) remains one of Budapest’s most expensive and tourist-oriented areas. As of early 2026:
— the median long-term rental price is approximately HUF 300,000 per month (around €780–790), representing an increase of about 4% year-on-year;
— the median secondary market sale price is estimated at roughly HUF 1.9 million per square metre, reflecting growth of around 15% over the past year.
As a result, discussions about a potential short-term rental ban are taking place amid continued growth in both rental and purchase prices in Budapest’s historic city centre.
⚠️ At present, it is important to note that:
— no ban on short-term rentals in District I has been adopted;
— no official timelines, regulatory framework, or transitional provisions have been announced;
— the initiative remains at a preliminary, district-level discussion stage.
Nevertheless, the emergence of this proposal aligns with a broader European trend, in which central districts of tourist cities increasingly restrict or eliminate short-term rentals as a tool to reduce pressure on housing markets and improve the availability of long-term rental housing.
Posted at:
03/02/2026, 12:11