12 February 2025
roadmap
hungary
Sustainability and innovation: a new law transforms Hungary's building, design and construction industry
Hungary's national settlement planning and construction requirements are currently governed by Government Decree 253/1997. (XII. 20.) (OTÉK), which outlines the regulations on which construction is planned and licensed. On 1 October 2025, Act C of 2023 on Hungarian Architecture entered into force, and together with an upcoming government decree on urban planning and building requirements (effective from 1 January 2025), it is expected to reshape the future of properties in Hungary. Until 30 June 2027, OTÉK and the Decree must be applied in parallel. The regulations will promote environmental awareness and sustainability, incorporating a new set of principles and restrictions on zoning for new construction, of which we have highlighted a few for your attention.
Back to nature
When planning new development areas in Hungary, at least 500 m² of green area must be preserved between construction zones, ensuring municipalities are surrounded by a "green belt" and to prevent mergers. Additionally, no new construction areas may be zoned on agricultural or forestry lands unless an equivalent area with similar biological activity is designated as a replacement. These measures aim both to maintain and prevent the reduction of green areas, with at least 3 % of the total construction area required to be preserved as green space. The regulation also applies to the shores of Lake Balaton, which will receive special protection, prohibiting new construction zones, except in very limited areas that do not compromise environmental interests.
The Architecture Act also seeks to enhance the widely recognised building energy performance certificates by introducing a "green certificate", which includes additional details about the surrounding green environment and its ecological performance. This document would form part of a broader green initiative, including green passport and green trademarks designed to monitor a comprehensive system of green energy, eco-friendly surroundings, and sustainable practices throughout the building's lifecycle. The information will be valuable for property owners and prospective buyers alike.
Read more about parking spots, and the set of changes that defines specific guidelines for placing solar panels and solar collectors on industrial and residential buildings online: schoenherr.eu/hungarian-architecture
In addition, the amendment addresses a common issue faced by many European cities – car parking – by prioritising on-site garages, particularly within buildings or underground. Similarly, bicycles, recognised as a key sustainable mode of transportation, which face insufficient mandatory storage space requirements at present.
Visibility or solar panels?
A new set of changes defines specific guidelines for placing solar panels and solar collectors on industrial and residential buildings aimed at maintaining both aesthetics and functionality. To protect the landscape, TÉKA stipulates that solar panels must be installed parallel to the roof and should not be visible from public spaces. It will include a full restriction on balconies; thus, neither freestanding nor integrated balcony structures can have solar panels installed. Special approval must be obtained for installation on heritage-protected buildings.
Digitalisation, the protection of built heritage, and changes aimed at enhancing the quality of human life are all welcomed. With the implementation of the new laws, we can anticipate the start of a process in Budapest that is essential for creating a more liveable environment. These changes will impose additional obligations on real estate developers and investors. While the ease of implementing digital solutions and modern regulations will facilitate progress, compliance with environmental considerations will require greater financial investment worldwide, and Hungary will not be an exception.
authors: Viktória Magyar, Lilla Szepsi Szűcs
