New constitutional amendment can result in a ban on buying houses, apartments for foreigners in Hungary
A proposed constitutional amendment in Hungary could lead to restrictions on foreigners buying houses or apartments. In his State of the Nation speech on 22 February, PM Viktor Orbán emphasised the right to “self-protection” for Hungarian settlements. This involves empowering local councils to limit the influx of non-residents and foreigners once they believe their capacity is reached. Consequently, purchasing property or building new homes in suburban areas around cities like Budapest, Győr, or Debrecen might become impossible in the coming decades.
New constitutional amendment ready
Several Hungarian regions face challenges due to the emigration of Hungarians to Western Europe for better salaries and working conditions. For instance, over 120,000 Hungarians were officially working in Austria last December. This has led to the depopulation of some villages and towns.
Meanwhile, some cities and their suburbs are experiencing an influx of both Hungarians and foreign nationals seeking employment, resulting in skyrocketing housing prices. The affected regions include the suburbs of Budapest, Győr, and increasingly, Debrecen.
PM Orbán’s proposal involves granting municipal councils the power to ban new housing developments and limit additional families. Regional Development Minister Tibor Navracsics confirmed that the constitutional amendment is ready, with details to be regulated by laws requiring a supermajority in Parliament, G7 wrote. Since Orbán’s Fidesz and KDNP hold a supermajority, approval is expected to be straightforward.
Budapest, Győr, Debrecen and their suburbs can introduce the new restrictions
The regulation will be optional, allowing settlements to introduce bans on real estate purchases or impose additional taxes if they feel they have reached maximum capacity or would like to preserve the original character and social structure of these settlements. In some suburban areas on the Buda side, infrastructure like water networks is struggling to meet the needs of a growing population, especially during the summer.
G7 predicts a future influx of foreigners into suburban areas around Budapest, Győr, and Debrecen, where such restrictions could be implemented. Meanwhile, many settlements, particularly in Northeastern and Southwestern Hungary, are expected to lose population over the next decade.
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