Scandal: Dubai billionaire can build skyscraper near Heroes’ Square

Governmental plans were released for a new city district and the funding of several new infrastructural buildings in the Rákosrendező area in Budapest. According to these, this proposal would include coordination with an Arab investor and the government is already working on the refinement of the plans with them.

The Arab investor mentioned is none other than Mohamed Alabbar’s company, the Emaar Properties. If this sounds familiar to you, it’s because this is the same company that built the Burj Khalifa in Dubai, the worlds tallest building, standing at 828 meters. Luckily, the one they plan to build in Hungary doesn’t even scratch that height, but with the planned 220 meters, it would still be the highest building in Budapest. The planned skyscraper isn’t the only shocking element of the plan: the broader vision includes the construction of a whole mini-Dubai in ten years’ time.

A long-term commitment

The funding of the new district would be an amount that is equivalent to roughly HUF 1900 billion or around EUR 5 billion. This sum would be based on an intergovernmental agreement between the United Arab Emirates and Hungary. The Emaar Properties would buy the area without competition, but at market price. The Hungarian government also pledged HUF 300 billion or roughly EUR 800 million for infrastructure developments in the area. These would include an overpass, metro and railway extensions.

The overpass would go between Zugló and Angyalföld, making the Városliget car-free. From this budget, they would also finally get around to restructuring the railways at Rákosrendező, which have been out of date for the last 20 years. The remainder of the money would pay for the construction of a pedestrian and bicycle path by the Rákos stream and the extension of the Metro Line 1. The area given to the Emaar Properties would host luxury apartments and office buildings.

The ground value for this area has not been estimated as of yet, that’s why the final price wouldn’t be fixed, rather a sum of square meter price. The area is estimated to be 69.3 hectares, but a few sections would be closed off from the deal. Among others, the necessary zones for long-term developments, such as the mentioned overpass, would also be excluded. The area of the BVSC would also be cut off as well as the Railway History Park. The Emaar Properties company also plans to build above the rails, but the plans are still pending and have not yet been approved.

Having doubts?

The proposition has not yet been approved and it seems that there’s already been a slip-up with time management. The third party, who would estimate the value of the discussed area, was supposed to inspect in early November, since according to Telex, the proposal was discussed in a governmental meeting at the end of October. To put the proposal into motion, the area would need to have an objective estimated value, and for that, a third party is needed. There was also supposed to be a public consultation and the involvement of local politicians. These haven’t happened yet and that may mean the government is having doubts about the whole affair.

A new Budapest

These doubts could be understandable since the area discussed sits very close to one of the crown jewels of Budapest, the Heroes’ Square. That means the proposed skyscraper would stand in the background of the world famous view. The mayor of Budapest added in a Facebook post, commenting on the issue of the Budapest skyline, that he finds it quite unbelievable that the government is even considering the offer.

Another main concern along with the questionable impact on this historical site is the lack of involvement of local politicians. Once asked about the possible construction, the Municipality of Budapest responded that they haven’t received word about it from the Parliament and as much as the Rákosrendező area is in need of a renovation, the public consultation can’t be left out when discussing a construction of this scale.

Nothing is certain, but discussion about the proposition is still taking place. Who knows, maybe ten years from now, we’ll see the DubaiPest come into being.

• Read about a foreign Hungarian construction HERE.
• Read more about foreign relations with the East HERE.