Public consultation closed on June 10, and real estate law experts from the international law firm Taylor Wessing outlined the potential consequences if the regulation is adopted.
Under the proposal, any commercial unit over 400 sqm would require a new permit in the event of a change in ownership or user, even if the purpose of the property remains unchanged. If adopted, the new rules would make permits person-specific. This means that following the sale of a building, designated unit, or retail space, the new owner could only continue commercial operations on the premises if they also obtain the necessary permit. Long-term lease agreements or usufruct rights would not provide exemption either.
According to the current draft, continuing commercial use after the space has been “put into use” would also require authorization.
“Although the proposal does not precisely define the terms ‘user’ or ‘put into use,’ the language of the regulation suggests that the new rules would apply to all new tenants of commercial units larger than 400 sqm,” noted Dániel Ódor, partner at Taylor Wessing Budapest.
The draft also contains additional tightening of regulations. It clarifies the definition of altering a sales area: internal changes to the sales floor layout, such as creating subdivisions with walls, would also require a permit.
Real estate legal experts say the proposed changes could significantly affect the operation of the retail market. The sale of a shopping center or the arrival of a new tenant in a unit larger than 400 square meters would trigger a new permitting process.
“This amendment would fundamentally change the use of commercial properties in Hungary. Making permits person-specific could impose administrative burdens on property owners and substantially slow down transactions and leasing. The resulting drop in predictability could particularly discourage foreign investors who seek a stable and transparent regulatory environment,” summarized Ódor.
The public consultation concluded on June 10. The final text of the regulation and its potential date of entry into force have not yet been announced.
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