Lázár-Ministry launches another wave of store closures

The decline of the retail infrastructure cannot be explained by demographic processes or low purchasing power; it can also be attributed to government measures that have made the sector impossible. This anti-market momentum is now being carried forward by the ministry of János Lázár with a new draft decree that would take away the remaining chance of renovating and modernizing dilapidated commercial properties, thereby causing significant damage to Hungarian customers.

According to the draft, prepared to avoid prior professional debate, from now on, even after purchasing or renting commercial units larger than 400 square meters that otherwise have a permit for occupancy and operation, the buyer or tenant would have to apply to the authorities for a commercial permit again.

In addition, the regulation would also require a permit if the operator wanted to separate a separate sales area within an operating commercial unit with any kind of interior partition solution – be it a piece of furniture or a coffee machine. In this way, the regulation not only makes it impossible to open new stores or renew old ones, but also prevents their division, although there would be a need for this, especially in large commercial units (malls and hypermarkets) that have become unused for some reason, areas that already have a commercial license, which would be enriched with a new function and better serve the interests of Hungarian families.

The draft law, according to its justification, is a clarification, but in reality it introduces serious restrictions on the utilization of commercial real estate.