Arab Investment Sparks Controversy Over Budapest Project

The news in Hungarian

Translation

In Budapest, a 100-hectare area has been sold to the Eagle Hills Group, a company from the United Arab Emirates. This marks the beginning of a major development project. Local leaders are concerned because there was insufficient communication and transparency. The Hungarian government and the public have expressed their worries over the construction plans.

Exercise: Text comprehension

Question 1: Who bought the 100-hectare area in Budapest?

Eagle Hills Group from the United Arab Emirates bought the 100-hectare area.

Question 2: What are local leaders concerned about regarding the project in Budapest?

Local leaders are concerned about the lack of communication and transparency.

Exercise: Vocabulary

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▌21/01/2025

The sale of a 100-hectare area in Budapest's Rákosrendező district to the Eagle Hills Group from the United Arab Emirates has ignited a wave of controversy and concern among Hungarian officials and citizens. This significant real estate transfer paves the way for a massive development project dubbed the "Grand Budapest."

According to sources, the agreement, which involves investment exceeding 12 billion euros, was signed between the Hungarian state and the Eagle Hills Group. Initial plans outline the transformation of the area into a new urban district featuring luxury apartments and office buildings, potentially including some of the tallest skyscrapers in Europe.

The reaction from local leaders has been mixed. Gergely Karácsony, the Mayor of Budapest, labelled the project as "outright betrayal". He criticised the sale, asserting that the government prioritised private profit over public interest by selling off prime city land to foreign investors. Karácsony warns that such developments might overshadow affordable housing and greening efforts crucial to the city’s urban landscape.

Arab Investment Sparks Controversy Over Budapest Project (Illustration)

Meanwhile, concerns also mount from András Rózsa, the Mayor of Zugló, the district affected by the project. Rózsa is troubled by the lack of communication and transparency over the project's specifics. He demanded answers from Minister Lázár János, highlighting the potential for increased traffic congestion and the need for substantial infrastructure upgrades, such as the extension of the metro line and the construction of new transport links.

Adding another layer to the debate, the Hungarian Ministry of Construction and Transport has voiced its opposition to the construction of 500-metre-tall skyscrapers proposed for the site. The Ministry insists on adhering to the national architectural law, which prohibits such towering structures, suggesting that the development plans might need revision.

The Eagle Hills Group, led by Mohamed Alabbar, known for similar projects in Belgrade, has not disclosed the acquisition cost. Speculation abounds regarding the future impact of the development, particularly regarding environmental and societal implications, as past projects by Alabbar have faced criticism and legal challenges in other countries.

As discussions around the "Grand Budapest" progress, it remains to be seen how all parties, including the Hungarian government and its citizens, will balance urban development with maintaining the characteristics and needs of the city's communities.

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