The Wekerle Sándor programme could deliver affordable rental homes and student accommodation, while the government also moves to revisit the M6 motorway deal and several controversial investments
Hungary could launch a multi-billion-euro rental housing programme by the end of the year, with the Wekerle Sándor Housing Construction Programme potentially reaching a value of up to EUR 3 billion, partly financed through EU funds, Transport and Investment Minister Dávid Vitézy said at Friday’s government briefing.
The government has not yet approved the programme’s detailed framework. For now, it is drawing up a list of tasks and the legislative changes needed to implement the scheme.
Vitézy said the Hungarian property market had slowed significantly and argued that the government needed to stimulate new housing construction. The planned programme would focus on affordable rental homes and additional student accommodation, with developments primarily targeted at brownfield and underused urban areas with good public transport connections.
Former Fudan University site could become housing development
One of the locations being considered is the Budapest site originally earmarked for the planned Fudan University campus. According to Vitézy, the government wants to prioritise brownfield sites and underused urban areas in Budapest and other major Hungarian cities. Choosing locations with existing public transport connections would make it possible to develop new housing without creating entirely new transport infrastructure.
The minister said the detailed development of the Wekerle Sándor programme could get under way by the end of December, with the overall programme potentially worth as much as EUR 3 billion.
Vitézy also criticised the housing policy of previous governments, arguing that the emphasis had been placed on helping people purchase their own homes rather than developing a sizeable rental housing sector. He said this had contributed to difficulties with social mobility, as people could become tied to the location where they own property.
Government to retender controversial M6 motorway project
The government is also planning to retender a major project connected to the M6 motorway, after Vitézy raised questions about the price and legality of a previous decision. The minister said that a section of the M6 between Dunaújváros and Érd had been awarded to MKIF, a motorway concession company linked to businessmen Lőrinc Mészáros and László Szíjj.
According to Vitézy, competing bidders were prepared to carry out the work for approximately HUF 50 billion, while MKIF quoted HUF 149 billion for the same work and services. The minister described this as a threefold overpricing and said the government would now put the project out to tender again, with the cheapest bid to be selected.
Vitézy also claimed that the original order had been unlawful because, in his view, the decision should have been made by then-Economic Minister Márton Nagy rather than by former Construction and Transport Minister János Lázár.
The ministry will file a criminal complaint in connection with the M6 case, Vitézy said. He also argued that the entire motorway concession system should be reviewed. The minister further criticised additional costs paid to the concession company, which he said had been requested on the grounds of the war in Ukraine.
Tougher environmental rules for battery factories
The government is also preparing changes affecting battery factories operating under special investment status. According to Vitézy, the government will review which battery plants have been granted priority status and will amend the relevant decrees.
If a factory violates environmental or nature conservation regulations, its special status could be suspended for at least six months. If the violation is not remedied, the suspension could remain in place for longer. Vitézy stressed that the aim was not to prevent battery factories from operating, but to ensure that companies comply with Hungary’s environmental regulations.
Several controversial projects lose priority status
The government has also decided to withdraw national economic priority status from a number of projects that have attracted controversy in recent years. The projects include:
- a brownfield development on the site of the former brickworks in Törökbálint;
- redevelopment of the former Lang factory site in Budapest’s 13th district;
- the Club Aliga development in Balatonvilágos;
- the planned Tihany Castle Hotel and Training Centre;
- the Fiatalokért Központ project in Sukoró;
- the National Tennis Competition Centre on Margaret Island;
- a logistics and general economic property development in Soroksár and Gyál;
- the Pázmány Campus development; and
- the planned National Circus Arts Centre near Nyugati railway station.
The withdrawal of priority status means these projects will no longer benefit from the special framework previously granted to them.
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New national transport bodies established
Another major change concerns Hungary’s public transport system. The National Transport Organiser and the Train Fleet company were established at the beginning of August following legislation adopted by the Tisza-majority parliament.
The National Transport Organiser is intended to perform functions similar to those of Budapest’s BKK, but on a national level. The Train Fleet company, meanwhile, could play a key role in planned rolling-stock purchases.
In particular, the new structure is expected to facilitate the planned procurement of new HÉV suburban trains and InterCity trains, for which the government intends to make use of around EUR 1.8 billion in EU funding.
The announcements form part of a broader overhaul of Hungary’s investment, housing and transport policies under the new government, with several large-scale projects inherited from the previous administration now being reviewed or reconsidered.
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