By Gabriella Galik, Founding Partner, KCG Partners Law Firm
On 14 October 2025, the Hungarian Government submitted a bill on amendments related to the introduction of condominium building rights, which involves several key legislative changes, including new rules on condominiums, real estate registration and notarial procedures.
The planned effective date is 1 February 2026. The proposed law aims to establish a safer and more transparent framework for purchasing newly built homes. It would grant purchasers legal protection even during the construction phase, while sellers would benefit from greater security in transactions. This would be achieved by creating a registrable right in favour of the purchaser during the construction of the condominium, which would automatically convert into ownership upon completion of the building.
The goal is to provide unprecedented security for contractors, credit institutions and purchasers during ongoing developments, which could ultimately contribute to reducing the price of newly built apartments. This new legal institution would not only enhance the protection of homebuyers, but also improve developers’ financing options, while at the same time facilitating access to Home Start loans.
Under the bill, condominium building rights would give purchasers a legally protected position with respect to the apartment in question, even during construction, whereas under the current legislation, this is only possible after handover. The introduction of the condominium building right is also closely linked to the Home Start loan program, which provides first-time homebuyers with a fixed 3% interest rate mortgage, even for the purchase of newly built apartments. This would enable purchasers to take out a Home Start loan during the construction phase, as the registered right would be acceptable to banks as collateral. Consequently, first-time buyers could secure financing earlier and would not have to wait for the handover. In addition, newly built homes would become more attractive not only as residences but also as long-term, secure investments, further stimulating the market.
The Hungarian Parliament passed the bill on 18 November, so from 1 February 2026 condominium building rights together with the Home Start loan will usher in a new era for the domestic real estate market.