In June, Property Forum reported on a draft amendment to Hungary’s so-called “mall stop” regulation, which governs the operation of retail units larger than 400 sqm. The government has now adopted the proposal, with the new decree published in the Official Gazette on 18 August.
Under the updated rules, a change of use permit is now required for all commercial buildings with a sales area exceeding 400 sqm if they are to be used for the sale of daily consumer goods. This applies not only to new developments but also to changes of ownership or user. In practice, a new operator must obtain a separate permit even if the previous tenant already held one.
The law also clarifies that even the physical subdivision of a retail space may be subject to approval, provided the resulting new unit will also sell daily consumer goods.
With the decree now in force, these concerns have become reality. According to the government’s justification, the aim of the amendment is to protect local communities, safeguard residents’ interests and ensure the controlled expansion of large-scale retail centres.
