Budapest real estate market in 2026: The end of the Airbnb gold rush

A new real estate report from Budapest Invest warns that a total ban in the 6th district and drastic tax increases will make short-term rentals in Hungary's capital unprofitable by 2026. Experts advise investors from the DACH region to strategically shift their focus to student housing. Budapest/Berlin, January 24, 2026 - For years, Budapest was considered the "Paris of the East" not only for tourists but also for investors from Germany, Austria, and Switzerland. With entry prices well below German levels and double-digit returns from Airbnb rentals, the Danube metropolis attracted private capital. But that era is now coming to an end. The regulatory "perfect storm" The report analyzes the massive legal interventions that came into force at the turn of 2025/2026. "We do not see this as a minor market intervention, but rather a targeted disruption of the sector," the analysis states. The new restrictions are based on three pillars that put investors under enormous pressure: The Ter?zv?ros precedent: In the popular 6th district, a de facto total ban has been in effect since January 1, 2026. Commercial short-term rentals are illegal, and violations are punishable by fines of up to 2 million forints (approx. 5,000 euros). Hopes for a legal softening were dashed after the K?ria (Hungary's Supreme Court) confirmed the primacy of residential rights over commercial interests.

National moratorium: The Hungarian government has imposed a nationwide freeze on new licenses. No new registration numbers (NTAK) will be issued for private accommodations until the end of 2026, making it impossible for new investors to enter the market in this segment.

Tax strangulation: For existing licenses in districts that are still open, the flat-rate room tax has almost quadrupled - from HUF 38,400 to HUF 150,000 per room per year. This significantly reduces margins, especially for smaller units.

Tourism boom meets housing crisis The backdrop to these tough measures is the discrepancy between record tourism figures and the local housing shortage. Budapest currently records almost 18 million guest nights per year (with around 6 million visitors), with short-term rentals recently accounting for around 40% of the market. The result has been a tripling of real estate prices since 2015, increasingly pushing locals out of the city center. The political response--driven by competition between the ruling Fidesz party and the opposition for votes in the upcoming elections--is now tough regulation that directly affects foreign investors. Strategy shift: from tourists to students

"The risk-return profile of Airbnb investments has shifted fundamentally into negative territory," the report concludes. However, the report is not a swan song for Budapest as a location, but rather a plea for professionalization. As the speculative market for vacation rentals dries up, Budapest Invest identifies a crisis-proof niche as a new "safe haven" for German investors: student housing.

With Semmelweis University and numerous international universities, Budapest is a magnet for foreign students, especially those from German-speaking countries and Scandinavia. This target group is looking for high-quality housing that the outdated and completely inadequate stock of state-run dormitories cannot offer.

According to the analysis, the advantages of this strategy are obvious: Political security: Neither the government nor the opposition are planning any restrictions on student housing. Currency stability: In the premium shared apartment segment, a de facto "euroization" of rental agreements has become established, protecting investors from the volatility of the forint.

Predictability: Instead of weekly tenant changes and cleaning costs, semester contracts with creditworthy parents as guarantors offer stable cash flows. The analysis specifically recommends that investors reallocate capital from tourist hotspots (Districts VI and VII) to the academic centers of Districts VIII (J?zsefv?ros) and IX (Ferencv?ros). "The Budapest market is maturing. It is transforming from a speculative playground into a professional investment market where substance and sustainable management are replacing the quick tourist euro," the report concludes.

The complete market report with graphics, tax comparisons, and detailed recommendations for action is available to interested parties and members of the press at: https://budapest-invest.com/en/budapest-real-estate-market-2026-after-the-airbnb-quake-strategies-and-opportunities/

Budapest Invest
Bezer?dj utca 10
1081 Budapest
Ungarn

https://budapest-invest.com

Herr Tim Adams
+49 170 1889008

tim@budapest-invest.com

Budapest Invest is the specialist partner for foreign private investors in the Budapest real estate market. With a focus on budgets between EUR100,000 and EUR300,000, the company supports investors from property acquisition and renovation to management and letting. The goal is to generate passive income through data-based investment strategies that steer clear of speculation.

This release was published on openPR.