Budapest: UAE-based Eagle Hills Group unveils controversial $12.3B “Grand Budapest” vision
The UAE-based Eagle Hills Group, headed by Mr. Mohamed Alabbar, has announced the $12.3 billion Grand Budapest project, aimed at transforming an underutilised 100-hectare site in Hungary’s capital into a modern urban hub. With plans for towering skyscrapers reaching up to 500 metres, the development promises smart city technologies, energy-efficient buildings, and €800 million worth of public infrastructure, including metro extensions and green spaces.
The project is alleged to boost Hungary’s GDP by 2%, create thousands of jobs, and enhance Budapest’s reputation as a forward-thinking urban centre. However, the ambitious initiative has sparked significant controversy regarding its implications for the city’s heritage and governance.
Government divisions have surfaced over the project, with the Ministry of National Economy supporting its high-rise designs, while the Ministry of Construction and Transport opposes them, citing the Hungarian Architecture Act. Budapest Mayor Gergely Karácsony has described the project as a betrayal, criticising the sale of land to foreign investors without transparency.
The mayor has demanded public access to redevelopment contracts to address concerns over governance and the city’s architectural integrity. Critics, including city assembly leader Dávid Vitézy, argue that the skyscrapers threaten Budapest’s historic character and fail to tackle the pressing need for affordable housing.
Whilst the Grand Budapest project positions itself as a sustainable urban transformation, public opinion remains divided on its actual benefits. Its blend of modern amenities, cultural centres, and energy-efficient solutions contrasts with concerns over heritage preservation and equitable development. As the debate continues, the project highlights the challenges of balancing innovation with cultural and social responsibilities in urban planning.
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