Ministry of Interior building in Budapest bought by “Mini-Dubai” investor
The grand building of Hungary’s Ministry of the Interior, located on Széchenyi Square, has found a new owner, according to freshly published documents by the Hungarian National Asset Management Inc. (MNV).
One bidder, no competition for the ministry building
Only one bidder entered the race for the prestigious property, placing a HUF 12.7 billion deposit and purchasing the three-building heritage complex for HUF 50.8 billion — without any price competition.
The buyer is Eagle Hills Hungary Zrt., a company owned by Emirati real estate developer Mohamed Alabbar, known for designing Dubai’s Burj Khalifa and previously involved in the abandoned “Rákos-Dubai” project in Budapest.
Familiar faces behind the deal
According to Válasz Online, Alabbar is no stranger to Hungary. He was the main investor behind the ambitious multibillion-dollar development once planned for the Rákosrendező railway area, which ultimately collapsed due to opposition from the Budapest municipality.
The businessman was photographed this summer walking around Kossuth Square in the company of Ráhel Orbán and István Tiborcz – shortly before his firm acquired one of the most valuable government buildings in the capital.
The sale is part of a broader governmental property reshuffle. As ministries and state agencies move into newly built office complexes in Zugló and along Ajtósi Dürer Avenue – purchased for some HUF 700 billion without prior impact studies – several iconic downtown palaces have become redundant.
The Interior Ministry moves to somewhere else
The Interior Ministry itself will relocate to the reconstructed neo-Gothic Royal Ministry of Finance in Buda Castle, leaving its downtown headquarters up for sale.
The 41,000-square-metre complex, considered one of the “crown jewels” of the state’s real estate portfolio, enjoys top-level heritage protection. The contract stipulates that its architectural values must be preserved during any renovation. However, all signs point to the likelihood that Alabbar will transform the building, located right next to the Gresham Palace, into a luxury hotel.
The legal groundwork for the sale was prepared by the law firm Takács, Kiss & Partners, formerly associated with Szilárd Nagy – the brother of Hungary’s Minister for National Economy, Márton Nagy. The firm has secured numerous lucrative state contracts in recent years.
Pretty good price for such a building
The transfer of ownership is scheduled to be completed by January 2026, except for a smaller section of the property housing a national telecommunications hub, which will remain in operation until July 2025.
For Alabbar, the deal is hardly disadvantageous: with an estimated price of HUF 1.2 million per square metre, the state sold one of its most iconic heritage landmarks at a relatively modest rate.
It seems that after the collapse of the Rákosrendező “Mini-Dubai” project, Mohamed Alabbar has not left Budapest behind – he has simply moved his ambitions to a more prestigious address in the heart of the city.
Fidesz is selling off the heritage of Hungarians to foreigners and you can bet someone somewhere in the party got a payoff.
“Hungary First!”
Oh, dear. Do not tell the people in the countryside. They will be so upset.
You could have had them throw in ultra sophisticated learning hospital at the rail site, for the opportunity to build the project.
Small minds get small return!