Budapest’s residential market is undergoing a noticeable reshuffling in district preferences. According to Duna House, the 13th District remains the clear frontrunner, while Zugló and Újbuda share second place. A new development is the rise of mid-tier districts offering better value for money, even as interest declines in the traditionally pricier Buda neighbourhoods. These changes are reinforced by the combined impact of the Otthon Start programme and tightening Airbnb regulations.
Lead Analyst at Duna House Péter Szegő noted that the Otthon Start initiative has not only stimulated the market but also reshaped preferences within the capital. Younger buyers and first-time homeowners are increasingly turning to more affordable and liveable districts, where supply is steadier and prices more reasonable.
Duna House data shows the 13th District attracting 22.6 per cent of inquiries, firmly keeping its top position. Zugló and Újbuda follow with 18.5 per cent each. The rise of mid-range districts is evident: interest in the 6th District climbed from 12.5 to 15.4 per cent in a year, while the 7th District grew from 14 to 16 per cent.
In contrast, demand has eased in the traditionally upscale Buda areas. The share of interest in the 2nd District dropped from 18.6 to 15.2 per cent, and in the 12th District from 16 to 14 per cent. The 1st District remained stable at 8.4 per cent, suggesting demand for premium locations persists, albeit at a slightly lower intensity.
Meanwhile, outer districts are seeing more attention. In the 19th District, interest rose from 6.6 to 9 per cent; in the 20th, from 5 to 7 per cent; and in the 23rd, from 2 to 3.4 per cent.
The statement also highlighted tightening rules on short-term rentals: after Terézváros, Erzsébetváros has now introduced stricter regulations. A decree that came into effect in September prohibits new permits for short-term rentals in residential buildings, effectively preventing the expansion of Airbnb properties in the 7th District. Existing permits remain valid, but supply will no longer grow.
The effects are already visible in Terézváros, where property prices began to fall after similar restrictions were introduced. The Supreme Court upheld the measures as proportionate steps to protect residents’ peace. According to Duna House, these changes may curb investment-driven purchases while creating more favourable conditions for young people buying homes for their own use.
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