Mall ban adopted: new permit required for operating larger retail stores
On August 18, the Hungarian Official Gazette published the so-called “plazastop” decree, which was submitted by the Minister of Construction, János Lázár. The decision could bring about serious changes in the domestic commercial sector, as the new rule stipulates stricter licensing conditions for stores with large floor areas.
New permit for stores over 400 square meters
According to the amendment, a separate change of purpose permit is required for every commercial building with a sales area exceeding 400 square meters if it is intended to be used as a store selling daily consumer goods.
The regulation also states that a new permit must be requested even if a similar store previously operated in the given building and the tenant had a permit. This therefore also applies to all new entrants or changes of tenant.
Purpose of the plazastop
According to János Lázár’s previous statement, the purpose of the regulation is to protect the interests of residents in settlements and control the spread of commercial units. The minister argues that the emergence of large stores can have a significant impact on the local commercial structure, which is why it is necessary to regulate the process.
Expected consequences
The adoption of the decree could mean a serious blow to the commercial sector in several respects. The licensing requirement could slow down the process of new investments and store openings, and increase the administrative burden for market participants. It could also cause uncertainty in the utilization of existing commercial properties.
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