Hungarian government withdraws from Rákosrendező development

This site was slated for significant development by an investment firm from Dubai, aiming to build a new district that included Europe’s tallest building. Local residents, the city leadership, and the chief city architect had expressed considerable opposition to the plans.

Legal Framework

The government's decision confirmed that BKM Zrt., which is owned by the Budapest Local Authority, possesses pre-emption rights for the land and is in a position to act on it. While specific details of the land sale were not outlined, the resolution allows BKM Zrt. the legal means to pursue the purchase. Minister Gergely Gulyás clarified that the capital was not obligated to a €5 billion investment but rather focused on cleaning up the area instead of adhering to the original plans suggested by the Arab investor.

Reactions to the Decision

Budapest's Mayor Gergely Karácsony praised the outcome, stating that it reflects a long-overdue recognition of the city’s interests. He assured that the city would act in accordance with the commitments made by the Dubai investor in the sales agreement, paving the way for the acquisition of the site.

Minister Gulyás acknowledged the complexity of the situation but expressed confidence in the city's capacity to effectively utilize the property moving forward. He also noted that it remains uncertain if this development will affect existing agreements with the United Arab Emirates.

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