Popular Balaton town considers limiting property purchase: others may follow

A recently adopted Hungarian law may allow local municipalities to restrict who can buy property in and move into their towns. The “Local Identity Act” (Önazonossági törvény) gives settlements the power to protect their identity, infrastructure, and way of life by limiting population growth: a move that’s now being considered by several towns, including Alsóörs on the northern shore of Lake Balaton.

Balaton town struggles with rapid population growth

Over the past 23 years, Alsóörs (a town near Lake Balaton) has seen its population grow by 47%, Pénzcentrum reports. Mayor Zsolt Hebling expressed support for the new law, stating that the town has reached its ideal size and further expansion could strain its public services. “We’ve managed to preserve the liveability of our village. I’m glad municipalities finally have tools to make their own decisions,” he told the press.

The law allows municipalities to set population caps, regulate new developments, and prioritise local buyers in property sales through pre-emption rights. However, local governments must first define the maximum population they deem sustainable before implementing restrictions.

Overreach?

While the law has sparked concern about potential overreach, it’s intended to address rising issues in rapidly growing areas, especially around Budapest and Lake Balaton. Officials argue that unchecked migration and mass real estate purchases often push out local youth and alter the traditional character of these towns.

Vác, a commuter town near Budapest, has already taken action. Though the city’s official population is around 34,000, local officials estimate it to be closer to 36–38,000 due to unregistered renters. In recent years, Vác saw entire new districts emerge, often with large apartment complexes lacking sufficient infrastructure like proper roads, drainage, lighting, and access to nurseries or kindergartens.