Hungarian state launches half a billion euro capital programme to support housing

National Economy Minister Márton Nagy announced the launch of a HUF 200bn (EUR 500m) capital program in March to support the construction of dormitories, rental flats, and homes at a press conference on Monday.

Nagy said the scheme’s announcement preceded intensive consultations with property market developers. Participation is open to all funds, open—or closed-end, existing or newly established, until the end of 2025, he added.

The state-owned Hungarian Development Bank (MFB) will invest in the funds only at EUR 73m (HUF 30bn) per fund, and its stake in each fund will be capped at 70pc.

Nagy said the HUF 200bn of capital would give the home market a “big boost” and contribute to GDP growth.

He noted that home sales had climbed by around 40 percent last year, but just 15 percent of home loans were used to buy new homes.

Nagy said the scheme’s timing was intended to bolster the supply side ahead of a large volume of maturing inflation-linked retail government securities in the spring.

He added that the goal was to increase the number of new homes constructed to 25,000 annually, up from around 12,000 in 2024.

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National economy minister meets with business assoc heads

National Economy Minister Márton Nagy met with the heads of business association VOSZ at his office on Monday.

VOSZ president János Eppel and chief secretary László Perlusz discussed proposals to activate Hungary’s labour market reserve with Nagy, his ministry said.

Nagy said local businesses, especially SMEs, needed to become more efficient and boost productivity to preserve the country’s competitiveness and keep up with wage increases.

He asked the VOSZ leaders to participate in the implementation of the Demján Sandor Programme, a government scheme to scale up SMEs.

Demján Sándor Capital Programme to launch with HUF 100bn in February

The Demján Sándor Capital Programme, an element of the Demján Sandor Programme for scaling up local SMEs, will launch with an allocation of HUF 100bn in February, the state secretary for SMEs announced last week.