Abu Dhabi-based developer Eagle Hills will no longer proceed with its Grand Budapest high-rise development, after the Hungarian government granted the capital’s municipality pre-emptive rights to purchase the land, Cabinet Minister Gergely Gulyas told reporters, according to Bloomberg. A government decree will officially confirm Budapest as the buyer of the 85-hectare railyard, voiding the previous HUF 51 bn (USD 128 mn).

REFRESHER- Eagle Hills signed an agreement in January with the UAE and Hungary to transform the plot into a EUR 12 bn sustainable, smart district featuring 500 m high towers — the tallest in the EU — alongside green buildings, renewable energy, and smart waste solutions. Dubbed “mini-Dubai” for its resemblance to the UAE’s luxury developments, the project was expected to boost Hungary’s GDP by 2%. The final payment was tied to EUR 800 mn in government-funded infrastructure.

What happened? Budapest Mayor Gergely Karacsony opposed the project, arguing the land was undervalued and urging the government to prioritize affordable housing instead of luxury real estate projects. The city’s assembly then moved to consider possibly using its preemptive right to purchase the land plot and block the acquisition, despite Hungary PM Viktor Orban’s support for the skyscraper district.

Budapest now fully controls the site’s development, but must cover financial obligations for the purchase.

Eagle Hills still has projects planned elsewhere in Europe: Eagle Hills is expanding in Georgia, investing USD 6 bn in projects under a new MoU between Georgian PM Irakli Kobakhidze and UAE President Mohamed bin Zayed Al Nahyan. Developments will include homes, retail, parks, schools, and commercial spaces in Georgia’s capital, Tbilisi, and the seaside cities of Batumi and Gonio.

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