Hungary proposes law allowing local councils to restrict property purchases
Hungary’s parliament is reviewing a new bill that could allow municipalities to limit who can purchase property and thus move into certain towns and villages. Titled the “Law on the protection of local identity,” the proposal was submitted by Deputy Prime Minister Zsolt Semjén and developed under the supervision of Tibor Navracsics, Minister of Public Administration and Regional Development.
While the original version would have given local governments the power to outright ban property purchases by non-residents, the submitted bill is more moderate. Still, it grants municipalities significant authority to regulate immigration, Telex writes.
New powers for local governments
Under the proposal, local councils could:
- Introduce conditions for property purchases and official address registration for newcomers,
- Impose a settlement tax on buyers moving into the area,
- Expand pre-emption rights not only to the municipality but also to local residents.
Discrimination will not be considered discrimination
Municipalities would be allowed to set a target population size—based on at least 2025 census figures—and base local restrictions on that threshold. Rules would need to remain “reasonable” and cannot violate human dignity or result in unjustified discrimination.
However, the bill clarifies that giving preference to certain groups—like families using state subsidies—would not be considered discriminatory.
One notable provision guarantees that individuals purchasing property through Hungarian state programs (such as CSOK Plus or rural CSOK) could settle in the community without restrictions. It remains unclear whether this also applies to those using baby loans or subsidised housing loans, though experts suggest they may be treated similarly in practice.
Sensitive timing in a volatile housing market
The proposed legislation comes during a period of rapid real estate price increases across Hungary. According to data from ingatlan.com, home prices in Budapest rose 19% year-over-year in April 2025, contributing to a suburbanisation wave. In Pest County, monthly housing price growth jumped from 0.8% in March to 1.7% in April. Similar trends have been seen around Szeged and Debrecen, where industrial developments have driven prices up significantly.
Real estate analysts say the softer version of the bill may ease property owners’ concerns. However, it could also prompt more local governments to consider restrictions in an attempt to preserve what they view as traditional community structures.
Read more news about the Hungarian property market HERE.
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