Budapest's Airbnb Moratorium: A Turning Point in Europe's Tourist Rentals?

Hungary's government is considering imposing a moratorium on new Airbnb licenses and increasing taxes for short-term rentals in Budapest. The move follows a district vote to ban such rentals, amidst concerns that short-term lets raise housing prices. Budapest is noted as a leading city for guest nights in Europe.

Hungary is weighing a potential moratorium on new Airbnb licenses and hiking taxes for short-term apartment rentals in Budapest, according to Economy Minister Marton Nagy. This decision comes after residents in Budapest's sixth district voted to ban short-term rentals from 2026, signaling a shift in Europe's rental landscape.

Budapest emerged as the most favored city for short-term stays in central Europe for 2023, boasting 6.7 million guest nights based on Eurostat data. The figures underline the scale of the issue as European tourist centers grapple with housing affordability amid a surge in short-term rentals.

Nagy emphasized that no final decisions have been made, but the alteration of the Airbnb market is inevitable, referencing it as a 'housing policy' matter. Negotiations with trade bodies are ongoing, and it's clear changes will focus solely on the capital, sparing the broader national market.

(With inputs from agencies.)