Local services
A new era in home building – Debrecen announces large-scale housing programme
Debrecen has become the new economic centre of Hungary and Central Europe in the past 10 years. This process has transformed the city’s real estate market and housing conditions, which has required both the local government and the city administration to take a proactive approach.
The city administration of Debrecen coordinates urban development processes along well-considered, long-term strategies. That is why we have launched the planning of the comprehensive transport and water infrastructure development of the eastern part of the city. That is why we have established new kindergartens and nurseries in the affected parts of the city, we are implementing large-scale transport developments, and that is why we support real estate developments with regulatory tools, thanks to which housing construction is taking place in many parts of the city.
One of the conditions for a positive change in the housing market processes taking place in Debrecen is the significant strengthening of the supply side. This is now one of our most important tasks, if only because the continuous economic development of the past 10 years, due to the pandemic, the energy crisis, and high interest rates caused by inflation, has not been accompanied by a proportional increase in the number of new homes. Therefore, based on the commitment made at the beginning of the 2024-2029 municipal term, the local government, together with Debreceni Vagyonkezelő Zrt. (Debrecen Asset Management Ltd.), is announcing a large-scale housing construction programme, thus opening a new era in home creation.
I.
TÓCÓVÖLGY REAL ESTATE DEVELOPMENT
An important decision point in this programme is whether the local government and Vagyonkezelő are able to implement such a programme on their own, with their own investment or not. The answer is that, given the current financial and economic trends, this is not possible, only by involving entrepreneurial capital.
In order to achieve the desired goals, Debreceni Vagyonkezelő Zrt. is announcing a public sales tender for the construction of the prepared Tócóvölgy residential park. As part of the preparation of the investment to be implemented in Tócóvölgy, DV Zrt. (abbreviated form of Debreceni Vagyonkezelő Zrt.) has developed a 10-hectare development area consisting of 7 plots.
The building intensity of the Tócóvölgy development is lower than the current building intensity in Tócóvölgy. The apartments are being built near an 11-hectare park, with an independent transport system independent of Tócóvölgy. In this way, they provide a modern, livable, green environment for those who intend to settle here, based on, among other things, the existing, excellent institutional infrastructure, such as the new Tócóvölgy kindergarten and nursery school.
In recent years, Debrecen’s housing construction market has been characterised by balance, and with the current investment, it strengthens its regional leading position in the field of real estate development.
An important feature of the tender is that the winning bidder must make a significant public development contribution. On the one hand, it must undertake the construction of the collector road and the internal road network of the development area and can also make an offer to contribute to the construction costs of the park located on the southern side of the development area. The collector road, the section of which within the development area must be given to the local government for use free of charge after its completion, is part of the new access road connecting Kishegyesi Street with Vincellér Street. This means that the new Tócóvölgy real estate development will not burden the existing Tócóvölgy residential area and Tócóskert in terms of transport. DV Zrt. and Tócóvölgy Fejlesztő Kft. (Tócóvölgy Development Ltd.) are announcing a two-round tender for the sale of the properties and the plans related to them. The Holding is primarily expecting applications from large investors for the sales tender, as the total development requires a value of more than HUF 10 billion.
Main aspects of the tender process:
1. Open, two-round procedure: In the first round, bidders submit their tenders, after which the list of participants in the second (bid) round is determined. The minimum purchase price is HUF 5.9 billion.
2. Online bidding: In the second round, online bidding will take place using special software. The planned duration of the bid is one hour, but it will be automatically extended if certain conditions are met.
3. Evaluation criteria: During the evaluation of the tenders, the financial stability of the bidders, the offers above the minimum purchase price, and the amount of public development contribution that the municipality will use for the construction of the public park within the framework of the Tócóvölgy environmental renewal programme are taken into account.
4. Commitments: The developer will have 3 calendar years to begin construction, and as a commitment, we also require the construction of the main road and associated utilities in the development area by June 30, 2028. As security for this commitment, the bidder must provide a bank guarantee.
5. Timeline of the tender: DV Zrt. is waiting for the application of the bidders and the acceptance of the prescribed sales criteria until June 30, 2025. The bid is expected to take place on July 8. DV Zrt. will announce the order of the bidders.
6. Contract conclusion: DV Zrt. and Tócóvölgy Kft. will conclude a purchase and sale contract with the winning bidder for the transfer of ownership of the properties and plans. The planned date of conclusion of the contract is September 15, 2025.
II.
ECOPARK
The Tócóvölgy real estate development is being created in a truly green environment, next to an 11-hectare ecopark along the Tócó stream. The central element of the development area, which also achieves ecological goals, is a 3-hectare lake system with a rainwater reservoir function but a continuous water supply via the Tócó stream, complemented by 8 hectares of green space, leisure and recreational developments. The development is part of the water ring around the city, implemented within the framework of Civaqua II.
III.
DERÉK STREET REAL ESTATE DEVELOPMENT
Debreceni Vagyonkezelő Zrt. will use part of the revenue from the sale of real estate in Tócóvölgy for its operations, and the other part for residential real estate development.
On Derék Street, Debreceni Vagyonkezelő plans to develop an apartment building with approximately 200 apartments on the 1.1-hectare area it owns, with the involvement of professional and financial investors. Debreceni Vagyonkezelő Zrt. intends to use 80-100 apartments from the development to improve the quality of the city’s housing stock through Cívis Ház Zrt. These will be made available to young people working in Debrecen through the Főnix Housing Programme supported by the municipality.
The Derék Street development could be a pilot project for the municipally owned Vagyonkezelő. Debreceni Vagyonkezelő still has several development areas where the number of rental apartments remaining in municipal ownership can be further increased.
Source and photo credit:debrecen.hu
