Orbán cabinet would build new dormitories, boost economy, review rental and Airbnb regulations in Hungary

Hungary wants to stay out of the “cold trade war” declared by Brussels and Western Europe and adopt a policy of economic neutrality, Gergely Gulyás, the head of the Prime Minister’s Office, said at a press briefing during a cabinet meeting in the renewed Tisza Castle in Geszt, in the southeast of the country, on Thursday. The government also talked about how to boost the economy and the need of new regulations concerning the rental and short-rental, Airbnb markets.

Gulyás said that such a trade war presented “extraordinary risk” to Hungary’s export-driven economy, cutting off the country from markets and investment opportunities. He added that a policy of economic neutrality would help achieve the government’s GDP growth target of 3pc-6pc.

If that level of growth can be achieved, wages will rise, budget revenue will climb and the success of the government’s economic policy will be validated, he said.

Stimulating economic growth top priority

He said the cabinet meeting had assessed and weighed the outlooks for the Hungarian and the European economies over the past three days. He added that the fundamental changes to the global economy brought on by the pandemic and the impact of the war in Ukraine required new responses and a new economic policy.

He noted earlier announced government decisions to introduce a credit scheme for young blue-collar workers and a capital programme for SMEs, as well as doubling the tax preference for families with children by January 1, 2026. He said the government would also make a priority of affordable housing, wage increases based on economic growth, and advances for SMEs. Related measures will be drafted in detail by the end of October and submitted to lawmakers with the 2025 budget bill early in November, he added.

Orbán cabinet wants to ease housing problems with regulating Airbnb?

He pointed to programmes supporting dormitories and housing for young people and acknowledged the higher rate of home ownership in Hungary in comparison with Western Europe. He said the appreciation in home values in recent years had resulted in a housing challenge, especially for young people. He added that the economy ministry had been tasked with reviewing international practices regarding rental regulations, including those for Airbnb-type short-term rentals.

He said the government would make accelerating home construction and ensuring affordable housing a “priority task” over the next two years.

He said the government wanted employers and unions to reach a multi-year agreement on minimum wage rises that would feed through to the average wage.