New proposal could exclude newcomers from moving into Hungarian towns

Hungarian towns may soon have the power to limit newcomers from settling, as a new proposal seeks to protect local communities and prevent market distortions. The plan, discussed by officials in Jász-Nagykun-Szolnok County, would grant municipalities the legal right to regulate property sales, ensuring locals have priority when buying homes. Some argue this would help preserve community identity and prevent settlements from becoming mere dormitory towns, while critics warn of downsides.

Newcomers banned from settling in Hungarian towns?

Szoljon writes that a new proposal could see restrictions placed on newcomers settling in Hungarian towns, as local governments seek to protect their communities. At a consultation organised by the Jász-Nagykun-Szolnok County Government Office, officials discussed the legal means of self-defence against newcomers. State Secretary Csaba Latorcai highlighted the importance of safeguarding community values and assisting local governments in this effort. He noted that Hungary has seen significant demographic shifts over the past three decades, with population decline affecting regions like Jász-Nagykun-Szolnok. While suburban migration is a broader trend, many former residents of Szolnok are not just moving to nearby settlements but leaving the region altogether, contributing to an ongoing shift from eastern to western Hungary.

Hungary house real estate village garden rent Budapest agglomeration Hungarian town
Photo: Daily News Hungary

Fighting the negative effects

Sokszínű Vidék also notes that Latorcai warned that the Budapest agglomeration is expanding and will likely encompass Szolnok in the coming years due to ongoing outward migration. Latorcai says:

The municipalities here should be prevented from becoming ‘dormitory towns’. This is because dormant settlements tend to lose their sense of community life, cultural specificity and, ultimately, their identity and competitiveness.

He stressed the need to prevent local settlements from becoming a place where people only return to sleep and rest. The impact of migration is also reshaping the real estate market in Hungarian towns, with newcomers either driving up property prices, making homeownership unattainable for locals, or, in some areas, contributing to a sharp decline in property values.

Preventing market distortions

The proposed measures aim to give local authorities in Hungarian towns greater control over property sales to prevent market distortions caused by incoming residents. In some areas, newcomers are inflating housing prices, making it difficult for locals to afford homes, while in others, an oversupply is driving property values down. To address these challenges, the government plans to grant municipalities legal powers to regulate property ownership.

real estate
Source: Pixabay

How would this proposal work?

Under the proposal, local governments could restrict outsiders from purchasing property or introduce a right of first refusal, ensuring that locals have priority if they can meet the asking price. Additional measures may include conditions on property acquisition, residency requirements, and tax adjustments. However, these tools would not be mandatory, allowing each municipality to decide whether to implement restrictions, apply them temporarily, or limit them to specific areas within their jurisdiction.

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3 Comments

  1. Hungary, growing in practice ELIMINATING removing people from country’s for “wrongful” reasons.
    People who have lived in Hungary for YEARS.
    People living in Hungary under a Residency Permit.
    Residency Permit issued for a (2) two year period only then need to re-apply every (2) two years.
    People from countrys of DEMOCRACY being TOLD to leave – NO renewal of Residency Permit will be granted.
    No longer do they “meet” the criteria(s) – to be granted a Residency Permit.
    Residency Permits don’t ALLOW people to Vote at National Elections.
    Refusal of Residency Permits – being refused to PEOPLE who are – SELF Funded Retirees.
    People have PRIVATE Medical Coverage.
    People are no Financial “drain” on the Hungarian Economy.
    People put Money being Refused renewal of Residence Permits – put money into the Hungarian Economy.
    Why is this happening to – New Zealand, Canadian, Australian people – people who have lived in Hungary for YEARS under a Residency Permit ???

    • This is also happening to Americans. I own my apartment, have private medical insurance, have the means to look after myself for a very considerable length of time, have no dependents am single (almost 60 years old), spend my money in Hungary and received my residency permit in 3 weeks! I’m now forced to seek a country to relocate to and cannot even sell my apartment without being fined 19% of 90 % of the sale proceeds. After 5 years I can sell without a fine but given these changes who knows what I’ll be told in 3 years time? Now I have to rent the apartment which will bring new headaches to my situation. So much for solidarity between Hungary & America.

  2. Asa Meister & People – Elimination – it’s APPALLING.
    The Embassy’s of Canada, New Zealand and Australia – plus the respective Ministers of Foreign Affairs and Consulates – have all been NOTIFIED – of the “acts” being practiced, as I write, being carried out by the Orban led Fidesz Government against people, under Residency Permit status living in Hungary.
    The matter has been refered to the applicable area of the European Union, and “knowledge” known, just the name Hungary – will not be of “favour”.
    Asa – communicate with the American Embassy, in Liberty Square, lodging your, as has “bulk” number of Americans, submitting your situation, under a RIGHT, as has the Canadians, the New Zealanders, the Australians – a process – a RIGHT of DEMOCRACY.
    The main opposition Political Party in Hungary – Tisza Party – they HAVE been INFORMED – and requested they be a “Voice” a BIG voice – to have this Orban led Fidesz Government – PURGE – on people born in countrys of DEMOCRACY, the holders of passports of the countrys referred in this commentary, under the status of a Residency Permit – that WILL reject application to remain in Hungary.
    SOLIDARITY – just not of Canadians, New Zealanders , Australians and Americans but “other” country’s that are not members of the European Union, but of DEMOCRACY that will be rejected to stay and live in Hungary.

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