Historic Interior Ministry palace in Budapest city centre up for sale – photos
Following the Interior Ministry’s relocation, the way has been cleared for the sale of the prominent building complex on Széchenyi Square, with bidding to start at HUF 50.8 billion and strong investor interest anticipated.
The Hungarian National Asset Management Inc. (MNV) is putting up for auction the building complex located at Széchenyi István Square, which had served as the headquarters of the Ministry of Interior for decades, according to a report by G7. The sale was made possible after the ministry moved to Buda Castle, prompting the government to remove the property from the list of strategic national assets in December 2024. This cleared the path for its sale:
Bidding opens on 15 September with a starting price of HUF 50.8 billion. Only those who deposit a HUF 12.7 billion security in advance may participate. The building is currently used as office space, but the listing allows for possible conversion into a hotel.
According to the listing, the usable floor area of the former Interior Ministry headquarters exceeds 41,000 square metres, making it one of the largest contiguous building blocks in central Budapest. The complex consists of three separate plots but forms a single architectural and functional unit.
Hungary’s state property auctions expand
The MNV’s catalogue, published on 2 June, includes several prominent properties: historic palaces and office buildings in the government district, as well as real estate both in the capital and in regional towns. Examples include the Ministry of Finance’s building on József Nádor Square, the central office of the Hungarian State Treasury, and several National Tax and Customs Administration (NAV) facilities. In central Lipótváros alone, as many as fifteen buildings may be sold, with some already changing hands at other auctions.
According to government statements, earnings from these sales are expected to exceed HUF 100 billion. The HUF 50.8 billion listing price for the Széchenyi Square complex makes it one of the largest items in the portfolio.
Could the former Interior Ministry be turned into a hotel?
Several hotels linked to István Tiborcz operate in the surrounding area, leading G7 to speculate that the former Interior Ministry complex could become part of this chain. However, the businessman previously told Portfolio.hu that the BDPST Group has no intention of participating in the state tender for downtown properties. Ultimately, future use will depend on the buyer and the relevant planning permissions.
The high starting price and HUF 12.7 billion security requirement significantly narrow the potential pool of buyers. Nevertheless, given the prestigious location and the building’s features, substantial interest is expected. If converted into a hotel, the World Heritage status of the area could impose additional regulatory hurdles and restrictions.
“(…) the building is currently excellently suited for office use, but due to its exclusive features and location, it can also serve high-profile purposes,” stated the MNV in the listing.
When can the new owner take possession?
The new owner will not be able to take over the property immediately: while the majority of the Interior Ministry has vacated the building, around 2,400 m² is still in use and will be for several more months.
The sale may also be influenced by the fact that both the Budapest municipality and the district council hold pre-emption rights. However, given the capital’s strained budget, it remains uncertain whether they will exercise them. Full vacation of the building is planned by the year’s end, with 15 January 2026 set as the target date for handover.
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Featured image: VinceB / Wikimedia Commons– [CC BY-SA 4.0]
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