Budapest Apartment Prices Decline Following Airbnb Ban
The effects of the recent vote to ban short-term rentals, including Airbnb, in Budapest’s District VI are already being felt in the local real estate market. According to László Balogh, chief economic analyst at Ingatlan.com, the price per square meter for apartments smaller than 50 square meters has dropped by about 5% since August, now averaging HUF 1.037 million (EUR 2,590). Additionally, the number of properties for sale in this segment has increased sharply, with a 50% jump in just three months.
Terézváros, where short-term rentals are most concentrated, has 2,700 properties listed on Airbnb, accounting for 8-9% of the district’s housing stock. Across all of Budapest, there are around 15,000 Airbnb listings, making up about 1.5% of the city’s total property market.
Experts had predicted that owners of affected properties would either sell them or switch to long-term rentals, which could slow price growth in the area and potentially dampen expected increases in housing prices. However, Balogh highlighted another factor that could impact the market next year: the Hungarian government is set to pay out around HUF 1,300 billion (EUR 3.25 billion) in bond yields, some of which may flow into real estate, particularly downtown properties. This influx of capital could offset the current Airbnb-related price drops and lead to another surge in property prices.
Despite the uncertainty surrounding Airbnb in Budapest, with no local regulations in place and no clear direction from the government, experts like Lajos Böröcz believe that the city’s diverse accommodation offerings will still meet the needs of most visitors. However, there is a risk of losing travellers who specifically prefer Airbnb properties and are not willing to settle for alternatives.
The impact of the Airbnb ban in Budapest’s District VI is already evident in the real estate market, with fluctuations in prices and property listings. As the situation continues to evolve, it remains to be seen how the market will adapt to these changes in the coming months.
