Launched in the fall of 2025, the program is widely known for offering subsidized mortgages with a 3% interest rate to help young buyers purchase their first home. However, it also includes a lesser-known component designed to boost the supply of new housing: large residential projects that meet certain affordability criteria can receive a special “national economy priority” status.
Under the scheme, projects with at least 250 apartments can qualify for the designation if at least 70% of the homes meet the Home Start pricing requirements. These stipulate that the price per square meter must not exceed HUF 1.5 million and the total purchase price must remain below HUF 100 million.
Developers must submit their applications to the Home Start Program Office, where each proposal is evaluated individually.
Projects classified as nationally important investments benefit from accelerated permitting procedures and reduced bureaucratic burdens, including faster approvals for construction, environmental and nature protection processes, land-use planning and surveying. The label also carries marketing value, as the “Home Start” designation signals affordability at a time of strong housing demand.
So far, 12 projects have already received approval and obtained priority status, while another 11 are currently undergoing public consultation. In less than six months, nearly two dozen developments have entered the process, highlighting strong interest from developers.
Together, these projects represent close to 6,000 new homes, since each development must include at least 250 apartments.
Although Budapest remains the dominant location for new housing construction, the program is also stimulating significant developments in regional cities.
One of the first projects to receive priority status is located in Veszprém, where a residential development is planned in a low-density suburban area. The landowner has been planning a housing estate there for several years, and the local zoning regulations were amended in 2024 to accommodate the project.
Earlier plans envisioned around 240 apartments on the site. Increasing that number to exceed the 250-unit threshold required for the Home Start designation was likely not difficult.
A large-scale project has also been approved in Szeged. The local municipality designated a brownfield redevelopment area where a major residential complex will now be built. The development could include buildings up to 10 stories high, while at least 50% of the area will remain green space, according to the developer’s plans.
The project is located within the area bordered by Kálvária Boulevard, Móravárosi Boulevard, Szabadkai Road and the railway line. Before the COVID-19 pandemic, the site had been planned for hotel and office development, but those plans have now shifted toward residential construction.
Demand for new housing in Szeged could also strengthen in the coming years. Production is expected to begin this year at the first European automotive plant of Chinese manufacturer BYD, which could attract a large number of workers to the city.
Another Home Start project is already in the pipeline in Debrecen, where demand for housing is also expected to increase as major industrial investments reshape the local labor market. Large-scale projects by battery manufacturer CATL and carmaker BMW are nearing completion in the eastern Hungarian city, while their suppliers are also contributing to job creation.
The Debrecen development is planned for a currently vacant site bordered by Vámospércsi Road, Veres Péter Street and Berzsenyi Road, where up to 60,000 square meters of real estate development could take place.
Among the approved projects outside the capital is a 270-unit residential development in Budaörs. The project has attracted attention because the local municipality objected to its designation as a nationally important investment last November.
The disputed site is currently classified as a special sports zone, and local officials argue that building residential units there conflicts with the city’s interests. According to the municipality, the necessary infrastructure for the development is not available and there are insufficient parking spaces for the hundreds of cars expected to accompany the new housing.
Aside from these cases, most of the approved projects so far are located in Budapest. The majority are in District XI, which has long been one of the capital’s key areas for new residential construction.
Large developments with several hundred apartments each are planned along Fehérvári Road, near the Savoya Park shopping center, and along Szerémi Road. Additional projects have been approved in District XV and two locations in District XVIII.
Meanwhile, District XIII — another long-standing hotspot for new housing development — could see the construction of around 470 apartments under the program.
One project in District IX is also notable because it involves completing a residential building that has been left unfinished for several years.
The number of priority projects could soon nearly double. In February, the government announced that public consultations would begin for an additional 11 developments. Apart from one project each in Debrecen and Budaörs, these are all located in Budapest.
In addition to the districts already mentioned, major new housing developments could appear in Districts III, IV, XIV and XIX, while additional sites in District XI may also receive priority status.
According to OTP Ingatlanpont, the initiative reflects the government’s broader effort to increase housing supply and moderate rising property prices.
“The government has been trying for years to stimulate supply in the new housing market in order to curb price increases, and the designation of priority investment projects is another element of this effort,” said Dávid Valkó.
The lead analyst at OTP Ingatlanpont added that some of the projects included in the program are already on the market.
“Among the projects listed above, there are some that are already under sale, so their local impact on housing prices may already be visible,” he said.
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