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Major housing and rental law changes are expected in fall 2020, aiming to improve transparency and protect all parties in the real estate market.
New Legislative Proposals for the Real Estate Sector
In October 2020, several major regulatory changes are expected in Hungary that could significantly affect housing construction and rental agreements. These proposed laws aim to improve market transparency and strengthen the rights of both parties, though they also pose challenges for developers, landlords, and tenants alike.
Changes to Housing Construction Rules
Proposals to simplify building regulations and permit processes are designed to accelerate the introduction of new homes to the market. The changes would also improve the efficiency of state subsidies and promote sustainable, energy-efficient construction. The draft laws include new provisions to preserve green spaces and improve community infrastructure.
Rental Law Amendments
Changes to rental legislation focus on improving contract clarity, protecting tenant rights, and defining landlord responsibilities more precisely. Under the new rules, stricter requirements for housing conditions may be introduced, and clearer guidelines could apply to setting rental prices and termination notice periods.
Impact on the Rental Market
The proposed laws could significantly affect rental contracts, particularly in relation to short-term rentals and Airbnb-type services. The goal is to clean up the market and increase the availability of housing for long-term tenants—helping to curb excessive price increases and reduce the risk of a housing crisis.
What Should Real Estate Stakeholders Expect?
Developers should closely follow the proposed simplifications, which may shorten project timelines, though meeting green building requirements will demand greater technical expertise. Landlords and tenants should also stay informed, as the new laws may introduce stricter conditions—but also offer increased legal protection for both sides.
Summary
The upcoming changes to housing construction and rental laws in October 2020 could mark a significant turning point in the Hungarian real estate market. These reforms aim to prepare the market for future development while maintaining stability and housing security.
