In recent years, the situation of allotments in Hungary has become increasingly controversial. In many cases, these areas have ceased to fulfil their original agricultural function, yet the legislation has continued to treat them as land. This caused many problems for the owners: it was more difficult to sell, to obtain loans and the use was not in line with actual needs. In response to this, the 2025 amendment to the law was adopted, allowing for the registration of closed gardens as land exempted from cultivation in the land register under a simplified procedure, provided that the local government concerned authorises this possibility by decree.
The importance of change is felt in several ways. For the owners, a big advantage is that they can free themselves from the previous constraints. This makes it easier to sell the land or even to use it as collateral for a loan. It is also important to note that the change could stimulate the market: the value of land in gated communities could increase as their legal status becomes clearer, which will also increase investor confidence.
However, the amendment is not a panacea. It is important to stress that the exclusion from cultivation does not in itself confer the right to build. Just because a plot of land was previously not buildable does not automatically make it uninhabitable just because it is taken out of the agricultural category. Building is still subject to the local building regulations, zoning, plot size, utilities and permission from the municipality. The role of the municipalities is therefore key: they have to decide by decree which areas are allowed to be withdrawn and where the previous rules remain in place.
The change is motivated both by the need to strengthen legal certainty and to stimulate real estate transactions. In many municipalities, the properties in the allotments have long since ceased to be cultivated and have been used as weekend houses, hobby gardens or even permanent residences. The law now creates an opportunity to bring the actual use and the legal status closer together. This is in the interests of both owners and potential buyers, but it could also benefit local authorities, as they can use their regulations to shape the development and attractiveness of the settlement within a regulated framework.
The main drawback is that not all municipalities will immediately take advantage of this opportunity. In many places, they approach the issue with caution, as planning permissions or utility upgrades can entail significant costs, which municipalities also have to consider. In addition, it can be disappointing if owners expect automatic building permission when the amendment only reclassifies the legal classification of the land.
Overall, the amendment of the zoning law is beneficial for owners and the market because it simplifies and clarifies the legal situation. The main beneficiaries will be owners and investors, but if municipalities use the possibility of regulation responsibly, in the longer term municipalities and local communities will also benefit.
