More than 30,000 apartments can be built in Hungary in just a few years
As part of the Housing Capital Programme, as many as 30,000 new residential properties — including apartments, rental homes, and student dormitories — could be built across Hungary within the next six years, according to the National Capital Holding.
The aim of the programme is to significantly increase the supply of housing on the domestic property market through a combination of public and private investment, thereby expanding housing opportunities nationwide.
Major development plans ahead
The capital programme could mobilise up to HUF 1,000 billion in total investment, drawing on state funding, private capital, and bank loans. Over its six-year term, this could result in the construction of an average of 5,000 new residential units per year.
This output would represent roughly a one-third increase compared to current annual construction levels, as approximately 15,000 new homes have been completed each year in recent years across Hungary.
Sándor Buda, Chairman and CEO of the National Capital Holding, noted that ten fund managers have already launched developments backed by HUF 160 billion in state commitments. The full allocation of the HUF 300 billion capital fund is expected by the first quarter of 2026.
The projects operate on a market basis, requiring at least 30 percent private investor participation. Expected returns also reflect current market conditions, currently estimated at around 10 percent.
Strict participation requirements
Only experienced domestic fund managers with a proven financial background and professional track record are eligible to take part in the programme. Each development may only begin after an independent expert review confirms its market justification and economic viability.
The National Capital Holding will continuously monitor the performance of all participating funds throughout the programme’s duration and may impose sanctions if necessary — such as reducing capital allocations or revoking fund management licences.
A win-win initiative
According to Buda, while the programme aims to expand Hungary’s housing market, it does not provide subsidies but rather represents market-driven investment. The goal is to ensure that invested capital generates competitive returns while facilitating the construction of new homes across the country.
Around 30 percent of the funding is expected to be directed toward developments outside Budapest, focusing primarily on residential projects.
The Housing Capital Programme is therefore expected not only to create thousands of new homes but also to stimulate Hungary’s real estate market, improve housing opportunities for young people and families, and support the development of regional cities.
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