Tuesday, 29 September 2026
Atenor has secured approval for a 280-apartment development in Budapest’s District XI, moving ahead with the conversion of a site previously intended for offices as the developer increases its exposure to residential property in the Hungarian capital.
BakerStreet II will provide approximately 26,700 sqm of housing distributed across three buildings. The site is located on Hengermalom Street in southern Buda, close to the Danube and several university campuses, with connections to public transport and major employment areas. The residential buildings are planned around an internal landscaped area and communal facilities.
The development represents a substantial change from Atenor’s original plans for the property. When the company expanded the BakerStreet site in 2021, the second phase was intended to provide additional office accommodation. Atenor subsequently reassessed the project as part of a broader strategy to reduce its exposure to Central European office development and increase the proportion of residential schemes in its portfolio.
The change also follows Atenor’s disposal of BakerStreet I in May 2025. At the time, the company identified the sale as part of its programme to reduce its Central European office holdings and confirmed that the neighbouring second phase was being redirected towards residential use.
Construction and apartment sales at BakerStreet II are expected to begin in the first quarter of 2027, with completion targeted for the second quarter of 2029. The newly approved design has 280 homes, compared with an earlier residential version of the project that envisaged 222 apartments, illustrating how the scheme has continued to evolve during the planning process.
BakerStreet II will add to Atenor’s existing housing activity in the same part of Budapest. Its Lake 11 development near Lake Kána is planned to contain close to 900 apartments alongside approximately 2,300 sqm of commercial space. The first 265-home phase has already been delivered, while construction and sales of the 146-apartment Lake 11 Flow phase started in March 2026. Atenor reported in September that more than 30% of the homes in that phase had been pre-sold.
The project will enter a Budapest market where new supply is expanding but sales momentum has become more selective. Around 22,000 homes were under development or being marketed in the capital in the first quarter of 2026, up 46% year-on-year, while the number still available for purchase reached a record 9,490. Construction is also recovering: 2,224 homes were completed in Budapest during the first half of 2026, 22% more than a year earlier, including 272 in District XI, while permits covering 6,560 homes were issued across the capital. Prices nevertheless remain high, with the average asking price for new Budapest housing reaching around HUF 1.85m per sqm by the end of March. More recent third-quarter market data indicate that this level remained around HUF 1.85m per sqm while sales of new homes fell 38% quarter-on-quarter. Against that background, BakerStreet II adds significant new supply to an increasingly competitive District XI market, making pricing, product quality and the pace of pre-sales important tests of Atenor’s decision to switch the site from offices to housing.
