A new government decree published today in the Hungarian Official Gazette significantly accelerates the approval process for newly built homes eligible for the fixed 3% mortgage program. As a result, construction on thousands of new housing units could begin nationwide as early as this fall. House-building will become easier in Hungary, provided the developer meets certain conditions; however, not everyone will welcome the change.

Administrative relief for house-building

The government is taking administrative steps to support and accelerate investments aimed at building homes for young first-time buyers. Last week, the Prime Minister’s Office established the Home Start Program Office, which is tasked with overseeing the successful implementation of the fixed 3% mortgage program and coordinating between government and non-government entities to facilitate new housing developments.

The government emphasises the urgency of launching affordable housing projects for young people, which is why the new regulation streamlines the approval process. According to the decree, any residential construction project planning to build at least 250 housing units—of which at least 70% meet the Home Start Program’s criteria—can be designated as an investment of paramount importance to the national economy. This special designation allows the project to receive expedited construction permits. Evaluations of these projects will be handled by the Home Start Program Office in conjunction with the Ministry of Construction and Transport.

Municipalities left out of the process

According to Telex, this opens the door for developments in areas where local governments—considering local conditions—would not otherwise grant approval. This means that even in places where utilities, infrastructure, or the education and healthcare systems are insufficient, large-scale apartment complexes could still be built.

The government argues that the program’s objective is to ensure regulatory compliance while enabling the launch of thousands of new homes within months for first-time buyers. The move aims to meet the housing needs of young people, secure consistent demand for the construction industry, and contribute meaningfully to national economic growth.

Support for developers also on the table

State Secretary Miklós Panyi previously stated that there are plenty of properties currently on the market that meet the program’s conditions—an estimated 100,000 across Hungary. This number is expected to rise as more sellers relist properties that previously failed to find buyers.

In addition, the government has launched a Housing Capital Program with a funding pool of HUF 300 billion (roughly EUR 757 million) aimed at significantly expanding the supply of housing. The program intends to provide major residential developers access to state capital under favorable conditions.

Telex also reported that private equity funds linked to Lőrinz Mészáros and István Tiborcz have already shown up in the program. “It’s possible a significant portion of the new units built through this initiative will be developed by companies associated with them,” the outlet noted.

Why do we even mention these people?

Lőrinc Mészáros is a businessman close to the government and a friend of Prime Minister Viktor Orbán. He is currently the wealthiest Hungarian, having amassed his fortune after Orbán’s Fidesz party came to power in 2010, subsequently winning public procurement contracts one after another.

István Tiborcz, the son-in-law of Prime Minister Orbán, began his career following his marriage to the prime minister’s eldest daughter, Ráhel. Tiborcz is now the third wealthiest Hungarian.

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