Hungarian government to launch HUF 200bn Housing Capital Programme

The HUF 200bn Housing Capital Programme initiated by the National Economy Ministry will be launched in March, state secretary for international financial affairs Márton Bókay said on Monday.

Hungarian government to launch new programme

Bókay said the HUF 200bn limit of the scheme is expected to generate real estate developments worth HUF 800bn-1,000bn, contributing to the construction of close to 30,000 residential properties in 5 years.

The head of the National Capital Holding, which coordinates the scheme, said he was confident that the financing could curb the rise in real estate prices by boosting the supply side. Participation will open to property funds from March 17; at least 80pc of the capital allocation must be spent on the construction of homes, rental homes and dormitories, Sándor Buda said. The remaining amount can be used on building office, logistics and commercial real estate. The funds can only be spent on domestic investments and the investors must comply with modern energy-efficiency standards, he added.

One fund manager can apply with several funds, for a minimum of HUF 5bn per fund. The maximum allocation per fund manager is HUF 20bn. The share of own resources must reach 30pc of the fund’s net asset value and the expected return is in line with market conditions. If necessary, the limit amount could be raised to HUF 300bn, Buda said.

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