Hungary’s Transport and Investment Minister Dávid Vitézy has announced the restart of Budapest’s long-delayed Student City (Diákváros) project, which aims to create new student accommodation and affordable housing in the capital.
Vitézy said the decision was made at a meeting of the re-established Budapest Public Development Council, with EU funding set to contribute to the project. The development has been stalled for years due to the former government’s plans to build a Chinese Fudan University campus on the same site.
Student City project to be revived after years of delay
Budapest has long struggled with a shortage of university accommodation, while the city’s housing crisis has made finding affordable housing particularly difficult for students. According to Vitézy, the Student City project could help address both problems while making higher education more accessible.
The minister said final plans supported by the capital and the affected districts had already been prepared before the project was put on hold.
“The goal is to give the brownfield site in Ferencváros new, valuable functions: we will create new student accommodation places with affordable housing in a liveable urban environment that is easy to reach,” Vitézy said.
He added that the next step would be to further develop the existing plans, with more details to be discussed by the Budapest Public Development Council.
Fudan plans put the project on hold
The Student City project was originally intended to provide a major expansion of student accommodation in the capital. However, the previous Fidesz government put the development on hold as plans emerged for a campus of China’s Fudan University on the site.
The proposed Fudan campus became a major political issue in Budapest, with the project facing strong opposition from the city leadership.
Former Budapest mayoral candidate and former Fidesz group leader Alexandra Szentkirályi announced in autumn 2024 that the Student City would nevertheless be built, presenting the project as a response to the capital’s housing crisis.
Earlier plans envisaged around 12,000 places at the Student City.
Mayor Gergely Karácsony had also repeatedly called for the project to be built. In 2021, he even warned that Budapest could refuse to host the 2023 World Athletics Championships if the government did not proceed with the Student City.
Budapest ultimately hosted the championships, but the Student City project did not materialise.
If you missed it: Good news for homebuyers and students: vast student city and residential district could rise on Budapest’s derelict waterfront
Site is now back in state ownership
Under the previous government, the state expropriated the land needed for the development. The Ferencváros local council had been set to receive HUF 3.5 billion in compensation for the property.
Vitézy said the site has now returned to state ownership, meaning the conditions are in place for the long-awaited project to move forward. He also said funding would be provided from EU resources brought back to Hungary.
The government now plans to revise and develop the existing plans before moving ahead with the project, which could eventually provide thousands of students with more affordable accommodation in Budapest.
