Costly government project may ease housing crisis for university students and bring down rental prices in Budapest
The government announced nearly half a decade ago that it would build a huge student city in the southern part of Budapest, just north of Csepel Island, directly opposite the new athletics stadium. The aim was to support university students struggling with the high rental prices in Budapest. The project fell through back then, but now it looks like it might be back on track, with a public tender promised by the end of November. If it goes ahead, between 12,000 and 18,000 dormitory places could be created.
Rental prices in Budapest beyond affordability
The National Conference of Student Unions has long highlighted one of the biggest challenges facing university students in Hungary: finding affordable housing. Dormitory places are extremely limited compared to demand, and with most students having little or no income, they struggle to keep up with skyrocketing rental costs.
Before the pandemic, the Hungarian government devised an ambitious plan to build an athletics arena with accompanying service tracks north of Csepel Island, alongside a student city connected to a huge park in the island’s northeastern corner.
Athletics arena, Fudan, dormitories
By 2023, the athletics arena was completed (some critics believed it was aimed at boosting a future Olympic bid, but it officially hosted the World Athletics Championships). Although the arena is open to the public, no construction has yet started on the planned student city. After 2021, plans shifted away from a student city with dormitories to a campus for China’s Fudan University in Budapest—a plan that sparked strong opposition politically and among higher education circles.
Following the pandemic and Russia’s invasion, the Fudan University plan fell through, although the related contract remains in effect. The government now seems to be returning to the original concept of building the student city. In September 2024, the Fudan Foundation was rebranded as the Knowledge-Space Foundation, receiving key properties in Budapest’s 9th district (over 178,000 square metres). However, a tender for the complex’s management failed, as only one party applied, mfor.hu wrote.
Is dormitory construction about to start?
Hungarian Minister Balázs Hankó recently announced that discussions have begun with all stakeholders—including student unions, universities, and youth organisations—to collaboratively shape the concept, services, and room offerings for the student city. He didn’t reveal the funding source or budget but stated the government aims to create at least 12,500 dormitory places within three years.
Hankó emphasised the goal is for Hungarian universities to enter the world’s top 100 by 2030, and the student city is key to that ambition. Another government target is to double the number of international students studying in Hungary by decade’s end.
Lots of students await the construction
State Secretary Veronika Varga-Bajusz, responsible for higher education, vocational and adult education, and youth, added that if all goes to plan, a public tender could be launched by the end of November. Interestingly, she mentioned 12,000 to 18,000 places. She also said this won’t just be a dormitory but a lively community space with areas for socialising, religion, culture, and sports.
According to the student unions, around 50,000 students in Hungary currently have dormitory places—far fewer than the 310,000 students enrolled across the country.
It’s worth noting some caution: a similar dormitory construction plan was announced before elections but never materialised. However, it could really help university students in Budapest who struggle with the high rental prices.
Read also:
- Number of foreign students may double in Hungary by 2030, building of a “dormitory city” in Budapest starts
- Budapest’s 9th district eyed for new student city to address housing shortage
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