Hungary’s Student City to Address Growing Demand for University Housing

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The Student City planned to be developed with government funding in Budapest could provide thousands of new student residence places within three years, as the country’s demand for higher education housing grows. Minister Balázs Hankó discussed this ambitious project, the success of Hungarian universities, and the housing needs of young people in a recent television interview.

Hungary’s plans for a Student City in Budapest are advancing, with thousands of new dormitory spots potentially available within three years following final approval, said Minister of Culture and Innovation Balázs Hankó, in a recent interview on commercial television channel TV2. The project, intended for Budapest’s 9th district, aims to address the increasing demand for student housing as enrolments rise across the country.

In his interview Hankó highlighted the growth of Hungarian higher education institutions, which continue to climb in international rankings and attract an increasing number of students. For the second consecutive year, more than 100,000 students were admitted, with half of them enrolling in regional universities outside the capital.

This rise in student numbers has led to a surge in demand for student residence places, with nearly 120,000 applications this year against a national capacity of just over 46,000. The situation is especially acute in Budapest, where 57,000 students applied for only 17,000 available spots. To meet these needs, Hankó proposed a major expansion in student accommodations, particularly on a brownfield site in the 9th district, where the new Student City could host between 12,000 and 20,000 accommodations. The proposed project includes a range of options, from single to multi-occupancy rooms, and facilities aimed at supporting young people as they start their careers and families. Hankó added that cost planning and budgeting for the project are underway, with efforts to secure external funding sources.

In response to a question Hankó noted that Hungarian universities are excelling globally, with twelve institutions ranked among the top 5 per cent worldwide. The prestigious Semmelweis University stands out as the only Hungarian institution within the top 1 per cent. Hungarian universities’ achievements are evaluated using four objective criteria: educational quality, research excellence, internationalization, and economic revenue, as well as a fifth criterion Hankó referred to as the ‘Brussels factor’. According to Hankó, the institution’s reputation could even surpass current ranks if EU regulations were not a limiting factor.

Shifting to the topic of national policies, Hankó highlighted recent measures aimed at supporting young Hungarians’ housing needs and career starts. Key initiatives include a discounted VAT on housing, rural home renovation grants, five per cent preferential mortgage rates, and a new employment loan programme. The employment loan scheme would provide young workers aged 17 to 25 with a 4 million forint interest-free loan if they start working in Hungary, with repayment deferred by two years upon the birth of a first child, halved with the second, and fully forgiven with the third.

The minister linked youth-focused policies to a broader competitiveness agenda for Hungary and the EU, which he argued needs the ‘energy and dynamism of the younger generation’. Pointing to a recent European summit declaration on youth, Hankó remarked that the EU must tap into young people’s potential to recover from a ‘competitiveness slump’ brought on by misguided policies.

With only four of the world’s 50 top technology companies headquartered in the EU, Hankó argued that a ‘competitiveness shift’ is overdue, suggesting Hungary’s educational and vocational model as a blueprint. Hungary’s success with universities and vocational training, he said, could help position the EU as a stronger economic player on the global stage


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The Student City planned to be developed with government funding in Budapest could provide thousands of new student residence places within three years, as the country’s demand for higher education housing grows. Minister Balázs Hankó discussed this ambitious project, the success of Hungarian universities, and the housing needs of young people in a recent television interview.

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