Buying Property in Mezőkeresztes: Protection or Prejudice?

I’m writing this from the terrace of our little winehouse, with a fan working double-time and my laptop precariously balanced between coffee and sunscreen. It’s another scorcher in the Balaton Highlands, but a cool front is (thankfully) on its way. I’m heading back to Budapest tomorrow for a few days of meetings, but I wanted to take a moment to share a story that, frankly, has been sitting with me for a couple of days.

The Hungarian property law Mezőkeresztes just enacted is officially called the Local Identity Protection Law – or in Hungarian, Helyi Önazonosság Védelméről Szóló Törvény. You might see it referred to in the press as the “Local Identity Protection Law,” though it now carries very real implications for anyone involved in buying or selling homes here.

The law was meant to protect small-town character and limit speculative investment. But its first real test case didn’t happen in a tourist hub or investor hotspot. It’s happening in Mezőkeresztes – a shrinking town in Borsod-Abaúj-Zemplén County. And what’s emerged from this case raises important, and at times uncomfortable, questions.

What Is This Law?

Hungary enacted its property law in July 2025, allowing municipalities to pass local ordinances that require buyers to submit all sale contracts directly to the town council. A local committee reviews the contract and either approves the buyer or chooses to purchase the property on the same terms.

The law was pitched as a way to preserve community character, avoid overdevelopment, and protect “local identity.” But it’s broad. Towns can choose to apply it however they see fit – and Mezőkeresztes chose to act first.

Why Mezőkeresztes?

This isn’t a Balaton-side village battling Airbnb speculators. Mezőkeresztes has seen its population steadily decline for years. According to HVG, the town has only 3 to 15 property transactions per year. Prices remain low, even though it’s near Mezőkövesd and the M3 motorway.

The ordinance passed on 27 June 2025 and took effect 1 July. Now, the local Financial and Economic Committee must review and approve every sale contract in Mezőkeresztes before completion. They have the power to approve or to pre-emptively purchase on behalf of the town. And while the text of the ordinance references protecting tradition and local ties, interviews with residents and past actions by the mayor suggest another motivation.

What Residents Are Saying

In 2016, Mayor János Majoros published an open letter urging residents not to sell homes below market value to Roma families. That letter is public record. Fast forward to this year, and reports by Népszava have documented growing concern among local Roma residents that the new ordinance is an effort to exclude them.

One resident told the paper:

“Nagy okosan nem írták bele a szövegbe, de ez a cigányok miatt van… mostantól majd a polgármester mondja meg, ki vehet házat a városban és ki nem.”
“They didn’t write it into the text, but it’s because of the Roma… from now on the mayor decides who can buy a house in town.”

Another recounted that a Roma relative was told they could only purchase a property in the neighbouring village of Szentistván.

Mayor Majoros, for his part, denies any discriminatory intent. He told Népszava:

“Nincs személyes, egyeseket kirekesztő és másokat előnybe hozó motívuma … a településkép megőrzése és a hagyományok ápolása miatt.”
“There is no personal motive to exclude some and favour others… it is to preserve the town’s image and traditions.”

He also pointed to a municipal programme where the town buys run-down homes and resells them at cost to young local couples. The municipality can now intervene before a property deteriorates – even if the seller isn’t asking for help.