Budapest’s District I council has proposed a complete ban on short-term accommodation rentals in the Buda Castle district from 2028, following a local survey in which two-thirds of respondents from the historic neighbourhood backed the measure. Stricter rules, substantial fines and new powers to temporarily close accommodation providers are also on the table.
Airbnb-style short-term rentals could disappear entirely from Budapest’s Buda Castle district from 1 January 2028 under new proposals put forward by the District I Municipality. The plans are part of a wider effort to protect the residential character of the historic area and the peace and quiet of its residents.
The municipality announced on its official Facebook page that a draft regulation had been prepared based on residents’ feedback. The proposal has now been opened for public consultation.
A survey conducted in September attracted 4,503 district residents. Of those who responded, 58.6% supported a complete ban on short-term rentals across the district, while support for the measure reached 66% among respondents living in Buda Castle itself.
What would change for Airbnb hosts in Budapest?
The proposed regulation would introduce different rules for Buda Castle and the rest of District I.
- Buda Castle: Short-term accommodation rentals could be completely prohibited from 1 January 2028.
- The rest of District I: Existing accommodation providers operating in apartment buildings would need the building community’s consent to continue their activities from 2028.
- Stricter enforcement: Authorities would carry out tighter checks, with substantial fines and temporary closures possible for violations.
The plans are not yet final. The municipality is inviting residents and other interested parties to submit comments and suggestions over a 15-day consultation period. Feedback can be sent to airbnb@budavar.hu, and the local council is expected to decide on the final regulation in November.
Don’t miss this: New EU housing rules could pave the way for tighter Airbnb restrictions in Budapest
Existing rentals would have a transition period
Owners of short-term accommodation properties in Buda Castle would not necessarily have to stop operating immediately if the proposal is adopted. Under the draft rules published on the municipality’s website, accommodation providers already registered by 31 December 2026 in the protected World Heritage area could continue operating until the end of 2027.
This would give owners a one-year transition period to prepare for the proposed ban, the municipality said.
District I says the main objective is to protect Buda Castle’s role as a place to live and safeguard the long-term interests of people who call the area home.
Never miss a headline: join Daily News Hungary’s official Telegram channel!
Fines of up to HUF 2 million and temporary closures proposed
The draft regulation would also introduce tougher penalties for accommodation providers that fail to comply with the rules.
The district clerk would be responsible for checking compliance. In the event of a violation, the authority could impose a fine and order the accommodation to close temporarily for 45 days.
The proposed fines would be charged for each inspection:
- HUF 200,000 (approximately EUR 546): For private individuals and sole traders.
- HUF 2 million (approximately EUR 5,464): For legal entities and other organisations.
The measures are still proposals, and their final form will depend on the outcome of the public consultation and the council’s decision, expected in November.