The Hungarian government has recognised that Budapest’s municipally owned company exercised its pre-emption right over the Rákosrendező plot. Therefore, the megaproject by UAE-based Eagle Hills Group, dubbed "Maxi Dubai" in the local media, is effectively cancelled.
A government decree regarding the pre-emption right of BKM Nonprofit Zrt. will be published today, announced Gergely Gulyás, the Prime Minister's chief of staff during a press conference.
The "Maxi Dubai" project at Rákosrendező
Rákosrendező, an underutilized and neglected railway hub located north of Budapest's city centre, has been the focus of a luxury district development project. On January 20, 2025, the Hungarian government announced a €123 million (approximately HUF 50 billion) contract with the Abu Dhabi-based Eagle Hills Group, the developer of the controversial Belgrade Waterfront project in the Serbian capital.
Under the agreement, the 100-hectare site was to be paid for in instalments until 2039. However, full payment was conditional on the Hungarian government's commitment to investing €800 million in traffic and infrastructure development around the site. The investor planned a large-scale mixed-use development, potentially including skyscrapers as tall as 250-500 meters, significantly altering Budapest’s skyline.
Financial implications for Budapest
According to the government, Budapest must now take responsibility for cleaning up and utilizing the land. Regarding financial commitments, Gulyás clarified that the capital will have to assume all liabilities. When asked if Budapest would need to deposit HUF 5,000 billion, Gulyás confirmed that the city replaces the UAE investor, who had initially agreed to contribute up to HUF 25 billion for site cleanup. This responsibility now falls on Budapest, and further development plans will be negotiated with the government.
Additionally, full payment is not a prerequisite for Budapest to obtain ownership; according to Gulyás, the city may become the owner upon paying the first instalment. He also noted that another pre-emptor technically exists but has not signalled an intention to proceed, suggesting that a small company is unlikely to raise the necessary funds.
