Ban on shopping malls
The Hungarian Parliament recently adopted a fixed term law to prohibit the construction of retail commercial areas (e.g. shops, supermarkets, shopping malls) with a floor space above 300 sqm with the purpose to strengthen small local businesses against multinational companies. Starting next year, it will not be possible to apply for a construction permit and initiate the construction of such commercial areas without special exemption given by the minister of commerce.
The prohibition begins on 1 January 2012 and ends on 31 December 2014, but it will not be applicable to projects that have already obtained the building permits. The bill also sets out that the minister responsible for commerce may, through a special committee, exempt certain projects from the ban. The committee will make its decision based on the requirements of a sustainable commercial activity in the respective area, taking into consideration especially the environmental effects, the current situation of commerce and the local market prospects. The exact rules of the committee’s process related to the exemptions are not yet disclosed to the public.
Real estate developers' organizations deemed the new bill as "worrisome and dangerous" and stated that it might have a devastating effect on both the construction industry which has already been in a recession for several years, and also on employment, as these commercial facilities provide for thousands of jobs.
