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On January 16, 2025, the government decided to sell the land of Rákosrendező (a severely neglected part of Budapest) that is not required for the railway operation, in order to fulfill the international agreement between the Hungarian government and the government of the United Arab Emirates. The long-awaited, comprehensive and complex development of the area around the currently abandoned Rákosrendező railway station can begin, the Ministry for National Economy announced.
The investment will significantly improve Budapest’s transport infrastructure, as well as the connectivity between the 13th and 14th districts, the ministry said in a statement. The designation of the areas concerned was carried out in close cooperation with MÁV Zrt. (Hungarian state railways), on the basis of which the state sold about 85 hectares of the Rákosrendező area at a net purchase price of HUF 50.9 billion (EUR 123.4 million). The development is being carried out by the Eagle Hills Group.
The new owner will be responsible for preparing the site for investment activities, removing waste, and carrying out environmental remediation.
The state has requested a number of securities and guarantees (parent company guarantee, bank guarantee, right of repurchase) to secure the individual purchase price installments. In accordance with the international agreement and the government decision, the payment of the additional purchase price installments will be made upon fulfillment of each of the commitments.
Therefore, the payment of the second installment is conditional on the completion of the legislative measures necessary for the successful implementation of the development in several stages, including the review and amendment of the relevant building regulations, the classification of the project as a priority investment, and the necessary land conversions, the ministry said.
The payment of the final installment is conditional on the implementation of the agreed public infrastructure development of around EUR 800 million.
This will include the construction of a road overpass over a pedestrian and railway crossing, the development of a railway track, the extension of the M1 metro line, the construction of a cycle path and a pedestrian zone, and the roofing of the railway track so that a park can be built over it.
The Rákosrendező area currently. Photo: Wikipedia
In view of the expected duration of the development, the contract will be finalized by March 13, 2039, at the latest, after which the developer will be obliged to pay the full purchase price (plus inflation) of the land,
the statement reads.
In the international agreement, the UAE has committed to invest at least EUR 5 billion in the properties concerned, creating a new modern district. According to the plans presented by Eagle Hills, buildings with heights of 250 and 500 meters could be placed in some parts of the area, the Ministry of National Economy said.
Under current legislation in Budapest, buildings taller than 90 meters cannot be built in the city, therefore the 250-500-meter tall buildings mentioned by the Ministry for National Economy seem exaggerated. This was confirmed by the Ministry of Transport and Construction, when asked by Telex: “The Ministry of Construction and Transport continues to insist on the observance of the relevant rules of the Hungarian Architecture Act (Act C of 2023), which prohibit the construction of buildings up to 500 meters.
We do not support the construction of 500-meter tall buildings and skyscrapers,”
they wrote.
In the meantime, Eagle Hills announced the official name of the project that represents an investment of over 12 billion euros. The project (which was called ‘Mini-Dubai’ by the public for a long time) will run under name ‘Grand Budapest,’ and “will create a new world-class green district,” said Mohamed Alabbar, founder and chairman of Eagle Hills.
The planned development will create 35-40 hectares of parks and public spaces, according to the company’s statement.
The development will not only restore a forgotten historical part of Budapest, they write, but also make it a global benchmark for human well-being, sustainability, and urban living. The Grand Budapest project, which now has a dedicated website, also includes schools, as well as sports and community facilities.
Via MTI, Telex, Eagle Hills; Featured image: Eagle Hills