Shocking parking fee hike in Budapest: Residents of this district face a staggering 17x increase!

At its most recent meeting, the Municipality of Erzsébetváros approved a substantial increase in parking fees, set to take effect on 1 January 2025. Residents will have to pay an annual parking fee of HUF 36,000 (EUR 90) for the first car and HUF 72,000 (EUR 180) for the second car.

This change represents a significant increase from the HUF 2,200 (EUR 5) per year for the first car and between HUF 45,000 (EUR 111) and 150,000 (EUR 372) for the second car, depending on the environmental classification. With the implementation of the new system, the annual parking costs for residents will rise by more than 17 times according to Telex.

Source: Pixabay

Reasons behind the parking fee changes

The reason behind the change is straightforward: free or low parking fees encourage car traffic, which diminishes the livability of districts. According to the signatories of the proposal, parking charges should be proportional to the use of public spaces, reflecting their value. The goal is to motivate residents to seek alternative parking options and to ensure the maintenance of public spaces while creating green areas. The district’s mayor, Péter Niedermüller, explained that Erzsébetváros is overcrowded with cars, and the current local parking fee for residents is merely symbolic, only covering administrative costs.

According to Index, the Fidesz government opposed the decision, referring to it as a punitive tax and pointing out that the municipality is facing significant financial challenges. Mayor Péter Niedermüller defended the increase, explaining that the district’s parking spaces were overburdened. He noted that 9,450 parking permits had been issued to residents, while there were only 7,203 parking spaces available—resulting in an average of 1.3 cars per parking space.

The results of the vote on the parking fee increase were as follows: the four-member Fidesz faction voted against, while the other factions, along with Mayor Péter Niedermüller, supported the proposal with ten votes.

Previous parking fee changes

In 2023, Elizabeth City limited households to two parking permits and altered discounts for second cars, reducing discounted permits from 1,142 to 610. The city also established residential parking, reserving 30% of spaces for permit holders from 6 PM to 7 AM. However, further development of this initiative is on hold. Péter Niedermüller, the mayor of Erzsébetváros, highlighted the social and health impacts of over-subsidized parking, including reduced green spaces and rising air pollution, which is linked to increasing asthma cases, while free public parking remains more attractive to residents.

Image for illustration only / Source: Pixabay

The long-term impacts

Erzsébetváros is not the first district to raise parking fees, as Józsefváros did the same in 2023. Other districts are likely waiting to see the public reaction to the newly approved changes in Erzsébetváros, and it is possible that this could lead to similar adjustments in parking fees elsewhere. The impact of these changes can be viewed in two ways: financially, it may be beneficial for districts to raise parking fees, but this could come at the cost of public outrage from residents, depending on which concerns weigh more heavily.

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