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ungary's government has removed the €500,000 direct property investment pathway from its Guest Investor Program (GIP), according to a recent issue of the Hungarian Gazette. The program now offers two routes to residency: investing €250,000 in approved real estate funds or donating €1 million to public education and cultural initiatives.

    This change comes just months after the program's July 2024 launch and before its planned January 2025 expansion. Discus Holdings Managing Director Laszlo Kiss attributes the decision to Hungary's evolving housing market conditions, citing rising rents and a desire to avoid inflaming the situation through increased competition for real estate.

    Arton Capital President Armand Arton suggests that market stability concerns also played a role in the decision. He notes that other European countries have faced challenges with unregulated real estate purchases, leading to defrauding clients. The fund structure, he argues, offers enhanced protections by allowing only regulated investments in specific sectors.

    The elimination of the property option may have prevented market distortions, according to Kiss. He suggests that properties valued at €350,000 could have become more expensive, putting additional pressure on the market. One World Migration CEO Anastasia Barna views the change as a logical approach that consolidates the fund pathway and aligns with the program's original economic objectives.

    The program maintains its benefits package, including a renewable ten-year residence permit and potential paths to permanent residency after three years. However, Russian nationals are no longer eligible for the program, according to Barna, who notes that this policy may be a temporary measure until Hungary makes a concrete decision on the matter.