Demo Hub; A zoom in transforming a former public school into Affordable Housing Units

The transformation of a vacant public school into affordable housing represents a key initiative under the AHA Budapest programme, aiming to create new affordable housing stock while providing essential housing services to vulnerable households. As part of the New European Bauhaus initiative, this project integrates inclusiveness, sustainability, and aesthetics, demonstrating how disused public assets can be repurposed to address housing exclusion.
The pilot project, known as the Demo Hub, is located in the Baross Street area of Újpest. Originally built in the 1960s as a vocational school for the leather processing industry, the building has been vacant since 2007. After years of deterioration, the Municipality of Budapest entrusted NART ARCHITECTS, a firm specializing in socially focused and complex architectural projects, to oversee the transformation into modern, low-energy residential units. Expected to be completed in 2026, the project will provide 26 families with affordable rental housing, serving as a model for the redevelopment of 15 other disused public buildings across the city.

The selection process for suitable buildings for conversion into affordable housing was a crucial initial phase. Budapest has a significant stock of abandoned public buildings, ranging from historical structures to mid-century and late-20th-century buildings. NART ARCHITECTS played a central role in this process, conducting technical evaluations on more than 30 buildings to determine their suitability according to the project needs. The primary focus was on identifying buildings with structurally sound frameworks that required no additional reinforcement, ensuring they could be adapted to their new use without major structural modifications. The primary criteria for selection included:
- Structural Integrity: Ensuring the buildings could be adapted without extensive and costly structural interventions.
- Budget Considerations: Evaluating renovation costs in comparison to the potential social impact and housing capacity.
- Accessibility and Location: Prioritizing buildings that were well-connected to public transport and could accommodate people with mobility challenges.
- Potential for Energy Efficiency Upgrades: Selecting buildings that could be retrofitted to meet modern low-energy housing standards.
- Zoning and Regulations: Determining whether the existing zoning allowed for residential conversion or if additional approvals were needed.
During the feasibility study, the team faced challenges related to historical preservation requirements, zoning laws, and infrastructure limitations. The process required extensive collaboration with municipal authorities, urban planners, and engineers to navigate complex administrative and technical aspects. The ultimate selection of the school in Újpest was based on its adaptability to housing conversion and its sound structural condition.

NART ARCHITECTS developed a comprehensive building program that carefully balances private residential spaces with communal and public functions, fostering a sense of community among residents. The overarching concept involved stripping the building down to its bare structure and designing a fresh, adaptable façade suited to its new function as housing. A key aspect of the approach was minimizing demolition and maximizing the reuse of materials from the site.
Several façade concepts were explored, each presenting a different design approach. These proposals underwent a thorough open municipal collaboration, where the technical department provided feedback on the designs. Ultimately, the final design was selected based on a brick façade option that closely resembles the original, preserving the building’s historical character while supporting its new use.
The building spans approximately 2,456.7 sqm across three floors and accommodates a total of 26 apartments. The building program was developed in close collaboration with the architects through a thorough advisory process, ensuring a diverse mix of apartment sizes to attract a broad target group.
The final layout includes:
- 2 large apartments (3–4 bedrooms)
- 6 medium apartments (2 bedrooms)
- 4 small apartments (1 bedroom)
- 16 studio apartments
Each apartment is designed to maximize natural light, ventilation, and energy efficiency, creating a comfortable and sustainable living environment. Open-plan living areas, compact storage solutions, and the use of sustainable materials contribute to both affordability and livability. In addition, all units are equipped with energy-efficient heating and cooling systems, reducing utility costs for residents. Each apartment features a newly fitted kitchen, a bathroom, and large PVC windows that enhance daylight and ventilation. Every unit is fully independent, allowing residents to control their own heating, and includes an individual washing machine for added convenience.
Ground Floor Layout

The ground floor is divided into two distinct sections:
- Private Residential Area: Designed for residents with mobility challenges, this section contains accessible housing units that meet universal design principles.
- Communal and Public Spaces:
- A housing office that offers services such as housing assistance and social support for vulnerable populations.
- A community space that facilitates social engagement, skills training, and outreach programs for both residents and the wider neighborhood.
- A communal outdoor garden between the two buildings, designed as a shared green space for relaxation and community interaction.
- Parking Considerations and Urban Context. The conversion of public buildings into residential use required careful navigation of Budapest’s strict parking regulations. Under normal circumstances, each residential unit would require an associated parking space. However, due to the building’s former classification as a school, the existing parking spaces were taken into account, reducing the requirement for additional parking. The development will provide eight parking spaces, including two accessible spots.
Residential Floors (First and Second Floors)

The two upper floors contain a variety of apartment layouts to accommodate different household sizes.

Top Floor Community Space
The top floor features an open-air community space, designed as a shared amenity for residents to use during the summer months. This space encourages social interaction and collective activities, enhancing the sense of belonging within the building.

Sustainability is at the core of the architectural approach, with a strong emphasis on reusing building materials throughout the construction phase. The project integrates key energy-efficient and environmentally responsible features, including:
- External Insulation: The building incorporates 18 cm of external facade insulation, providing a thick thermal barrier to improve energy efficiency and indoor comfort.
- Windows: Newly designed, larger energy-efficient double-glazed PVC windows are installed, complemented by a high-performance HVAC system to reduce energy consumption.
- Renewable Energy Integration: Photovoltaic solar panels on the roof supply hot water, decreasing reliance on conventional energy sources.
- Sustainable Materials: The use of recycled and locally sourced materials minimizes the building’s environmental footprint and promotes responsible construction practices.
- Heating & Cooling: The building is equipped with electrical heat pumps, ensuring efficient heating and cooling for all units.
Several challenges emerged throughout the project, requiring strategic solutions and adaptability:
- Technical Adjustments: Integrating modern MEP (mechanical, electrical, and plumbing) systems into an existing structure proved both costly and complex. Extensive modifications were necessary to ensure compliance with contemporary building codes and efficiency standards.
- Zoning and Bureaucratic Delays: The transition from public to residential use required navigating multiple layers of bureaucracy, resulting in procedural delays.
- Political and Administrative Challenges: Adequate time had to be allocated for a mature design process and architectural programming to strike the right balance between cost, design quality, and community needs.
- Budget Constraints: Achieving a cost-effective yet high-quality design while integrating energy-efficient solutions required careful material selection and structural adaptations to remain within budget
The Demo Hub in Újpest serves as a great pilot example of how vacant public buildings can be repurposed into inclusive, sustainable, and architecturally distinct affordable housing solutions. By combining housing provision with social services, this project provides a holistic approach to addressing housing exclusion.
As a scalable model, the lessons learned from the Demo Hub can inform the redevelopment of additional public buildings across Budapest, ensuring that more disused structures are reintegrated into the city’s social and urban fabric while fostering a more inclusive and resilient housing ecosystem.
The project’s integration of sustainable design principles, community involvement, and architectural innovation establishes a framework for future affordable housing initiatives. By leveraging existing public assets, cities can effectively address housing shortages while promoting environmental responsibility and social well-being.
About this resource
The European Urban Initiative is an essential tool of the urban dimension of Cohesion Policy for the 2021-2027 programming period. The initiative established by the European Union supports cities of all sizes, to build their capacity and knowledge, to support innovation and develop transferable and scalable innovative solutions to urban challenges of EU relevance.
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