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.