New 'Plaza Stop' Legislation: Significant Shift for Hungarian Retail Real Estate
Boedapest, dinsdag, 17 juni 2025.
The Hungarian Shopping Centre Association (MBSZ) has announced a widely discussed legislative amendment that potentially aims to reform the entire commercial real estate market in Hungary. The new draft regulation seeks to significantly tighten usage rules for retail spaces in shopping centres and hypermarkets, with potentially far-reaching consequences for retail businesses. Industry experts fear that this restrictive measure could reduce investment willingness and weaken Hungary’s international competitive position. The MBSZ is pursuing constructive dialogue with policymakers to find a balanced solution that serves both economic interests and spatial development.
Background of the New Regulation
The planned amendment to the ‘plaza stop’ concerns the 143/2018 (VIII. 13.) Government Decree, which will specifically regulate the commercial real estate market in Hungary [1]. The new draft regulation requires a government licence for selling or leasing medium and large commercial properties, including a ‘change of usage permit’ for commercial spaces larger than 400 square metres [2].
Potential Market Consequences
Experts fear that this legislation could make the market environment so unpredictable that few investors will be willing to launch new commercial real estate projects [3]. International comparisons show that Hungary is currently lagging behind other Central European countries such as Poland and Romania in terms of real estate development and international retail brands [4].
Industry Organisations’ Response
The Hungarian Shopping Centre Association (MBSZ) has immediately begun studying the draft amendment and collecting professional feedback [5]. The National Trade Confederation (NCC) warns that the regulation poses risks not only for new projects but also for daily business operations [6].
Strategic Considerations
Some experts suggest that the regulation’s objective is not only focused on regulating the urban environment or commercial structure but also on expanding state control over the commercial real estate market [7]. The draft proposal’s explanatory note is described as ‘extraordinarily vague’, creating further uncertainty [8].