Residents living near the MÁV-owned housing in Budapest’s 13th District report that illegal squatters have occupied vacant units over the last 18 months, leading to a deterioration in public safety. Local authorities and residents state that the area, once a quiet neighborhood for railway workers, has seen an increase in criminal activity and harassment since the buildings were emptied following the cancellation of the proposed “Mini-Dubai” development project.
From Railway Housing to Squatter Settlement
Until 2024, the MÁV housing area was considered a quiet neighborhood primarily inhabited by railway employees. According to Deputy Mayor Gábor Puchner, the situation shifted when the Ministry of Construction and Transport, led by János Lázár, terminated rental contracts and cleared the buildings to make way for the planned “Mini-Dubai” development, which was ultimately abandoned.
Once the properties stood vacant, individuals began occupying the units. Police data cited by the Deputy Mayor indicates that many of these squatters arrived from Borsod and Szabolcs counties. Residents report that these individuals survive by collecting scrap metal and plastic bottles, though authorities have also encountered runaway minors from children’s homes and individuals wanted by police.
The deterioration of the neighborhood followed the 2024 termination of rental agreements by the Ministry of Construction and Transport, which was originally intended to facilitate a large-scale real estate development project in the Rákosrendező area.
Security Concerns and Future Demolition
Local inhabitants describe a climate of fear, reporting that they are frequently harassed by the new occupants. Incidents of violence, including a stabbing, have been reported in the area as criminal activity has risen.
While the local municipality has expressed a desire to demolish the buildings to address the safety concerns, the Deputy Mayor noted that they have lacked the authority to do so until recently. The Ministry of Construction and Transport stated that MÁV supports measures to restore order and improve the quality of life for those living nearby. The responsibility for these decisions shifted after the capital city purchased the area in 2025. According to the municipal utility company responsible for the site, the official demolition permit for the structures was issued two weeks ago.
The transition from a stable residential area for railway workers to a security risk highlights the volatility of urban development zones when long-term planning fails. The lag between the eviction of legal tenants and the execution of a new development plan has created a vacuum, effectively shifting the burden of neighborhood management from the state to the local community.
The Future of the Rákosrendező Site
The “Mini-Dubai” project, which was to be led by the developer Eagle Hills, faced significant scrutiny before it was officially canceled. Instead of the Emirati-backed plan, the capital city has moved forward with its own project for the Rákosrendező site. Ownership of the land was officially registered to the city during the spring, and the winning concepts for the new development were publicly presented in March.
Frequently Asked Questions
Why did the original residents leave the MÁV-owned buildings?
The Ministry of Construction and Transport terminated the rental contracts and cleared the buildings to prepare for the planned “Mini-Dubai” development project.
Who are the current occupants of the buildings?
According to Deputy Mayor Gábor Puchner, the individuals are primarily from Borsod and Szabolcs counties. They have been observed collecting scrap metal and plastic, and reports indicate the presence of wanted criminals and minors who have fled from care facilities.
When will the buildings be demolished?
The capital city, which purchased the area in 2025, issued a demolition permit for the site two weeks ago.
How will the planned city-led development project in Rákosrendező impact the long-term safety and living conditions of the current residents in the 13th District?
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