Goodbye mini-Dubai, hello Grand Budapest: The €12 billion urban transformation!
Following a major government decision, the sale of the Rákosrendező railway station, which has been neglected for decades, was officially closed on 16th January 2025. The real estate development called Grand Budapest aims to create a modern, world-class district that will bring profound changes to the transport and economic life of Budapest.
The Eagle Hills Group from the United Arab Emirates has taken on the Grand Budapest project, which covers 85 hectares of land and was acquired for a net purchase price of HUF 50.9 billion (EUR 123.5 million). The redevelopment will focus on sustainability and becoming a smart city. The plan is to create 35 to 40 hectares of parks and community spaces in the 100-hectare area. The new district will promote sustainable urban living through energy-efficient buildings, renewable energy systems, and smart waste management. The project will include a range of sports, education, and leisure facilities, with a strong focus on improving the quality of life for city residents.
The Grand Budapest: a new neighbourhood!
The project’s official name, Grand Budapest, reflects its scale and ambition. According to the Hungarian Government, buildings between 250 and 500 meters tall are planned to form a new district that will be a dominant feature of the cityscape. The UAE government has committed to encourage an investor from the UAE to invest at least HUF 2 trillion (EUR 5 billion) in the area, which will positively impact other sectors of the economy besides the construction industry.
The investment will create thousands of new jobs, both during construction and operation, and is expected to contribute to a 2% increase in Hungary’s GDP. Property values will rise, local businesses will be boosted, and Budapest’s attractiveness as a tourist destination will be significantly enhanced. Eagle Hills emphasised that the development will pay particular attention to the interests of the local communities and will strictly comply with all architectural and environmental standards.
Eagle Hills and investors
According to Abu Dhabi investors, the Grand Budapest project aims to create an urban environment that offers sustainability, innovation, and community experiences. According to VIlággazdaság, the new neighbourhood could be a model for the world on how to transform a derelict industrial site into a liveable and modern urban district.
Eagle Hills will pay the purchase price for the land in three instalments. Upon completion of the first instalment, the company will acquire title, which will allow the project to begin. The payment of subsequent instalments is closely linked to the fulfilment of commitments made by the Hungarian government, including the creation of the necessary legal environment and ensuring the priority status of the project. The payment of the final instalment is conditional on the implementation of public infrastructure improvements worth some HUF 329.6 billion (EUR 800 million), including new road and rail links and the extension of the M1 metro.
The final deadline for the Grand Budapest project is 2039, by which time the improvements will have been completed in stages. Once the inflation-adjusted purchase price has been paid in full, Eagle Hills will complete its investment, leaving behind a vibrant new neighbourhood that could become one of Budapest’s most prominent.
UPDATE
- Controversy erupts over €12 Billion Grand Budapest development: critics raise alarms
UPDATE 2
BREAKING NEWS: Game-Changing clause could halt Hungarian Government’s skyscraper plans for Grand Budapest investment!
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Featured image: depositphotos.com