Speaking at a press conference, Nagy said the scheme was developed following intensive consultations with property market developers. The program will remain open to participation by all funds—whether open-end or closed-end, existing or newly established—until the end of 2025.
The state-owned Hungarian Development Bank (MFB) will manage investments in the funds, capped at HUF 30 billion per fund, with the MFB’s stake limited to 70% in each fund.
Nagy emphasized that the capital infusion would provide a “big boost” to the housing market and contribute to GDP growth. While home sales rose by around 40% last year, only 15% of home loans were used to purchase newly built homes, underscoring the need for additional support to expand the supply side of the market.
The scheme’s timing coincides with the maturing of a large volume of inflation-linked retail government securities in the spring, which Nagy said would help bolster housing supply in anticipation of increased demand.
The program aims to more than double the number of new homes constructed annually, raising the figure to 25,000 from the approximately 12,000 built in 2024. Nagy described this initiative as a critical step to invigorate Hungary’s housing market and strengthen its broader economy.
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