Mini-Dubai in Budapest: Real Estate Developer Purchases Area Around Rakosrendezo Train Station

  • 21 Jan 2025 2:28 PM
Mini-Dubai in Budapest: Real Estate Developer Purchases Area Around Rakosrendezo Train Station
To fulfil the provisions of the international agreement between the government and the government of the United Arab Emirates, the areas around the Rakosrendezo train station in the capital that are not required for railway operations were sold on January 16, 2025, the National Economy Ministry said.

The state sold approximately 85 hectares of land for a net purchase price of HUF 50.9bn to UAE developer Eagle Hills to eliminate the "rustbelt zone".

The ministry said the new owner will be responsible for preparing the area for investment activities, including the removal of waste and carrying out environmental remediation.

In accordance with the government decision on the sale, Eagle Hills will pay the purchase price in three instalments, with the payment being aligned with the fulfilment of state commitments included in the international agreement. After paying the first instalment, the developer acquires ownership of the area in order to begin developments.

The payment of the second part of the purchase price is subject to the legislative measures necessary for the successful implementation of the development, including the review and amendment of the relevant building regulations, the classification of the investment as an investment of special importance, and the completion of the necessary land development.

The final payment is conditional on the implementation of around EUR 800m of state infrastructure developments. This may include constructing a pedestrian and railway overpass, railway track developments, the extension of the M1 metro, the construction of a cycle path and footpath, and the covering of the railway track in such a way that a park can be created above it.

Given the expected duration of the developments, the contract will be concluded no later than March 13, 2039, after which the developer is obliged to pay the full purchase price of the area corrected for inflation.

In the international agreement, the UAE has committed to investing at least EUR 5bn in the properties concerned, creating a new, modern city district.

Based on the ideas presented by Eagle Hills, buildings as high as 250 metres to 500 metres can be placed in some parts of the area.

Source: 
MTI - The Hungarian News Agency, founded in 1881.

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