Referendum to Decide Airbnb’s Future in Terézváros, Budapest

Referendum on Airbnb Operations in Terézváros, Hungary

Residents of Hungary’s vibrant Terézváros neighborhood, situated in the heart of Budapest, are preparing to cast their votes in an upcoming referendum. This critical vote will determine whether the popular short-term rental service, Airbnb, should be prohibited from operating within the precinct. Currently, approximately 7% of the residential properties in this bustling area—around 2,200 homes—are utilized as private accommodations for tourists and visitors.

While supporters argue that short-term rentals provide significant benefits to the local economy, critics warn that such accommodations contribute to escalating property prices, making it increasingly difficult for locals to afford housing. Tamas Soproni, the mayor of the sixth district, emphasized the urgency of the situation, stating that there is no minimum threshold for the referendum to be deemed valid. However, he noted that several thousand votes would be necessary to send a strong message to the local government to take decisive action on the matter.

“Unfortunately, the reason we are asking this question is that we lack other legislative options. The capacity of municipalities to address this issue is limited,” Soproni remarked.

One local resident expressed his reservations about a complete ban on short-term rentals, suggesting instead that the industry should be subject to regulation. He acknowledged, however, that implementing such regulations could lead to complications. “Even with regulation, many of the underlying problems may still persist,” he shared with Euronews.

This local initiative follows a trend observed in several European cities, such as Barcelona in Spain, where authorities have either capped the number of available short-term rentals or have expressed intentions to eliminate these services altogether.

To learn more about this pressing issue, be sure to watch the video in the player above.