In 1969, a new panel housing estate was founded on the northeastern border of Budapest, in a wheat field and a former cemetery, near the Szilas-patak (Szilas Brook), commemorating the 50th anniversary of the Hungarian Soviet Republic (1919).
[1] It was named Újpalota (literally "Newcastle") after the adjacent village of Palota ("Castle"), which initially became a suburb of the Hungarian capital, and later part of Greater Budapest.
[1] 104 panel buildings (5, 7, 11, 13 and 15-storey blocks) were planned for the area, containing 14,105 flats with an average floor space of 52.6 m2 (566 sq ft) (including one-, two-, three- and four-bedroom apartements).
[1] In the late 1970s, Újpalota had 60,000 inhabitants from all over the country, but mostly from the poor neighbourhoods of Budapest (Józsefváros, Kőbánya, Újpest, Kispest, Angyalföld), where the slum housing was demolished.
[1] Újpalota provided these poor families with a large improvement in living conditions, including district heating, piped hot water and flush toilets.