DunaCity - Largest ever Budapest property development set to kick off

UrbanDev

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The new Budapest project DunaCity is finally ready to take off.
It's a very challenging project by Gropius Zrt. and Questor Group.

Architects are EEA (Erick van Egeraat Group).
www.eea-architects.com
I really love their current Oosterdoks Island project in Amsterdam, and I believe that they are very well placed to bring such huge project to a good end.

What worries me a bit is that
a) The project was sold as the first skyscraper project in BP, but now it seems they will not have the permission to build above the average height.
b) First planning was to have everything ready in 2015. Now they talk about... 2025 as deadline. That means that the first generation of buyers will live on a construction site for 15 years.
c) Different sources report that there are already financial problems now, and the construction has not even begun.

Here you can find some info:

The DunaCity construction will start within weeks and contrary to original plans, will last for 15 years.

With infrastructural developments nearly completed, construction is set to begin within weeks on what will become Budapest's largest property investment to date in the south of the city, Napi Online reports.
DunaCity, jointly developed by Gropius Zrt and the Questor group, will build the capital’s largest ever residential property project, sprawling on 500,000-square meters of land by the Danube, south of the Lágymányosi Bridge in Pest. The site was among one of three locations considered for the failed government district project but was eventually dropped in favor of a plot behind Nyugati Railway Station.
The developers have spent Ft 1.5 billion on infrastructure, including Ft 700 million on a road connecting the future complex with the outer ring road, also known as Nagykörút. Meanwhile, the planned size of the total built-in area has been increased by around 70,000 sqm to over 500,000 sqm, with more ground reserved for green areas too. Despite earlier plans, no high-rises will be built on the site.
According to Napi, construction may start within weeks and contrary to original plans, will last for 15 years. Nearly half of the planned developed area will be alloted to residential buildings, 20%-25% to offices and 15%-20% to commercial outlets, while the remaining plots will accommodate a hotel and fitness-wellness center. The development’s estimated cost will be about Ft 250 billion.
Gropius denied a previous report by Napi which said the company faced financial problems as it was struggling to pay back debts now topping Ft 1 billion. President and CEO Gyula Csáktornyai said Gropius made a pretax profit of Ft 700 million-Ft 800 million on sales of over Ft 15 billion last year, and it already has Ft 12 billion worth of projects in the pipeline for this year, which shows that it remains on solid financial footing.
Source: Napi Online / RealDeal.hu


Official website:

People interested in Budapest or Hungary, there are some interesting reports to download (pdf format).
Especially the "Hungary Budapest Market Report by Colliers" is worth a read.

Here some more info from the Skyscraper forum:
The proposed schedule takes into consideration the market cycles of each segment, the interaction of various elements, the development capacity of the area at hand as well as the time and spatial limitations of the desired development quality.

* In the first phase, the former warehouse would be assigned a function. This would help introduce and popularise the development area. These functions would include catering and entertainment on a base area of 6,000 m2, in connection with open-air Block F, which is to act as a promenade and festival square.

* Simultaneously, the reconstruction and expansion of the protected office building would be commenced. This building would also receive a new function, on a total area of 15,000 m2.

* In connection with the above, temporary utilisation would include housing leisure, entertainment and catering facilities, providing an “event site” on a section of the riverside (Block F), serving as a kind of prelude to the later atmosphere (“festival park”).

* Afterwards, the first green field investment is commenced on the commercial centre in Block A, on a net area of 20,000 m2, in line with the stage of the development of Block B including the commercial and office functions. The latter will provide a shopping arcade on 50,000 m2 and offices on another 50,000 m2.

* The residential development in the low-built area of Block J (row houses and blocks of flats along the riverside) will be started simultaneously but independently of the office and commercial developments. The area will be accessible through the already constructed passageway from Beöthy Street.

* The residential function will be extended in the process in Blocks I, G and H, where the riverside row houses will be followed by blocks of flats. The construction of the blocks will start from the Danube side and then progress towards the city. Considering the absorbing capacity of the market and the composition of the product portfolio, a total of 250-400 flats are expected to be delivered annually.

* Exploiting the area's unique characteristics, the next phase will comprise the implementation of unique iconographic elements that will add a new flavour to the city. In addition to the high-rise buildings (Blocks C and D), the construction of floating homes will also commence.

* The starting date for Blocks C and D, comprising mostly office functions (on a net area of approx. 130,000 m2) will depend largely on the demonstrated tenant absorbing capacity.

* After delivering the office development in Block B, the full office programme will be divided into several stages. Schedules for additional facilities (hotel, conference centre, sports centre) will also be based on operator requirements, starting from Kvassay Road, progressing towards the interior of the area. Assuming current market trends will not change, the construction and leasing of offices on a base area of 20-30,000 m2 every 2-3 years is a realistic target.

* After delivering the office development in Block B, the full office programme will be divided into several stages. Schedules for additional facilities (hotel, conference centre, sports centre) will also be based on operator requirements, starting from Kvassay Road, progressing towards the interior of the area. Assuming current market trends will not change, the construction and leasing of offices on a base area of 20-30,000 m2 every 2-3 years is a realistic target.

* After the completion of the above phases, the prestige of the entire development project will be greatly enhanced, which makes it possible to achieve the highest possible quality in the course of developing the most valuable areas. The next step is the implementation of the high-density and high-price luxury blocks of flats in Block F (200 in total).

* By this time, the former warehouse may be ripe for a change of function, housing high-profile loft flats from then on (110 in total).
Source: Skyscrapercity.com
 
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