Budapest’s District XI (Újbuda) council has approved a controversial planning agreement that effectively clears the way for a 140-apartment residential development next to the popular Lake Feneketlen.
Residents opposed, but council said compromising was the only solution
The decision follows months of negotiations between the Budapest municipality, developer Forestay, and nearby residents, but has done little to calm opposition from locals who argue the project will put excessive pressure on the neighbourhood’s infrastructure and alter its character, reports Népszava.
The development will replace the former headquarters of the Hungarian Socialist Party (MSZP) on Villányi Road, a prominent building dating back to the 1970s that currently operates as a student residence. The vote took place during an extraordinary council meeting, where demonstrators gathered outside carrying signs reading “Újbuda is full” and “Stop the concrete lobby” before voicing their concerns inside the chamber.
Budapest’s district council approves revised development plans
The approved planning agreement allows Forestay to construct three residential blocks containing approximately 140 flats on the site. While the project has remained highly controversial, district officials argue that negotiations secured significant concessions from the developer, writes Telex.
Under the agreement, the maximum buildable area of the site has been reduced from 50% to 40%, while the required green space has been increased to 30%. The highest point of the development has also been lowered to 26.95 metres compared with earlier proposals. Forestay will additionally pay HUF 1 million (approximately EUR 2,800) per apartment as a local development contribution to the district.
Deputy Mayor Attila Erhardt argued that the municipality had already tightened previously generous planning regulations inherited from an earlier administration, saying the current agreement represents the most favourable outcome achievable under existing legislation.
Developer says project has been significantly scaled back
According to Forestay, the original plans underwent several revisions following lengthy consultations with neighbouring property owners, particularly those living on the slopes of Budapest’s Gellért Hill overlooking Lake Feneketlen.
The company said detailed photographic surveys were carried out from nearby apartments to assess the impact on panoramic views before redesigning the project. Managing director and co-owner Péter Németh said the company progressively reduced the height of the buildings during negotiations.
He noted that the current planning rules would have allowed buildings of up to nine storeys with as many as 200 to 300 apartments. Instead, Forestay says it has voluntarily limited the scheme to five-storey buildings containing around 140 homes while increasing green areas beyond regulatory requirements. A written agreement was also reached with residents of neighbouring buildings aimed at preserving existing views of the lake.
Historic building remains another point of contention
The future of the existing building has become almost as controversial as the housing project itself. Originally constructed as an educational centre for the Budapest branch of Hungary’s former communist party, it later became the headquarters of the Socialist Party after the political transition. Today it functions as student accommodation.
Several civic organisations and local residents have argued that the structure should be preserved rather than demolished and reconstructed. They point to its distinctive architecture and valuable interior artworks, particularly a unique glass mosaic comprising around 500,000 individual pieces.
Some residents have even suggested the building should receive heritage protection, although it currently enjoys no such status. Forestay says it has completed a heritage inventory of the building and is committed to preserving the mosaic. According to the developer, one museum has already expressed interest in acquiring the artwork, although reinstalling it in the reconstructed building also remains under consideration.
Stay up-to-date: Airbnb bust continues in Budapest as another district joins the regulations
The council says it could not stop the project
One of the central issues throughout the debate has been whether the Budapest municipality could have prevented construction altogether. Opponents argued that the district should impose a development freeze and seek alternative legal avenues to reduce the site’s development rights. However, council leaders maintain that Hungarian planning legislation left them with limited options.
Under current rules, municipalities that reduce a property’s development rights within seven years of those rights being acquired may have to compensate the landowner, potentially costing billions of forints. Officials said this legal framework made unilateral restrictions financially unrealistic.
Have you heard? Luxury empire in city inhabited by tens of thousands of Hungarians lands in US President Trump’s wealth declaration
The council favoured the developers’ plans
The Budapest district’s council also argued that a temporary construction ban would likely lose its effect once municipalities adopt new local planning documents, which must be completed nationwide by June 2027. District officials therefore concluded that negotiating a compromise with the developer offered greater benefits than pursuing legal measures unlikely to stop the project.
Meanwhile, the council also approved separate planning agreements with developer Biggeorge Property covering three additional residential developments elsewhere in District XI. As part of that deal, the company will contribute HUF 500 million (around EUR 1.4 million) towards the construction of a new Danube riverside promenade and pay HUF 800,000 (EUR 2,250) per apartment in development contributions to the district.
Read also: Where to buy property in Budapest? A district-by-district guide to the city’s best addresses
