Tibor Navracsics, the Hungarian Minister for Public Administration and Territorial Development, recently discussed significant changes to property transaction regulations during a morning program on M1 television.

The discussions revolve around five potential solutions designed to enhance local community protections.

Currently, approximately 2,000 of Hungary’s 3,100 municipalities are experiencing population decline, while roughly 1,000 report an increase, creating varying challenges within local demographics.

Particular areas such as the Budapest agglomeration, Lake Balaton, and Lake Velence have been highlighted as regions at risk from these demographic changes.

The minister noted that municipalities are seeking greater protection and that discussions have included substantial legislative measures.

Among the proposed reforms is a ban on property transactions for non-residents, as well as the potential extension of preemption rights, conditionality on property purchases, and residency registration requirements.

Additionally, local tax obligations may be reassessed under these new regulations.

Navracsics emphasized that any new legislation would include exemptions aimed at preventing discrimination against specific demographic or religious groups.

Special exceptions proposed include allowing individuals born in the municipality to return and facilitating residency for those moving to the area for state public service.

These proposed mechanisms are designed to curb purchases made solely for investment purposes, which may endanger local communities that have preserved their identities over centuries.

Specific historical communities, such as the Swabian and Serbian villages around Budapest, are cited as examples that have seen a loss of original identity.

In a further communication on Kossuth Radio's 'Good Morning, Hungary', Navracsics elaborated on the ongoing community value protection consultations, which involved around 2,000 mayors, members of the National Assembly, and council presidents over a two-week period.

He indicated that the legislative proposal could be approved by the National Assembly during the upcoming spring session, with potential enforcement by summer.

The Minister also referenced the first call for proposals under the Competitive Districts program, urging local governments and district development forums to prioritize community-centered investments over large infrastructure projects.

Initiatives such as the installation of camera systems and speed cameras, as well as enhancing healthcare services, are noted as ways to foster community well-being.

A national development budget of 65 billion forints has been allocated to support these community-driven projects.