When purchasing, inheriting, or planning to build on real estate in Hungary, we often encounter terms such as “inner city area,” “outer city area,” or “enclosed garden.” These concepts are important not only from a geographical perspective but also from legal and economic standpoints. They determine what can be built on the land and how the property can be used and developed.
To understand these, let’s first look at what urban planning and land classification actually mean.
1. The Basics of Urban Planning and Land Classification
The territory of every municipality is regulated by the local government through urban planning instruments. The most important of these are:
- and the zoning plan.
- the local building code (HÉSZ),
- the settlement structure plan,
These determine which areas within the settlement’s boundaries are classified as inner or outer areas, and where enclosed gardens are located.
The HÉSZ classifies the municipality’s administrative area into various zones (e.g., residential zone, commercial zone, agricultural area, etc.), but the fundamental distinction always lies along the boundary between the inner and outer areas.
2. What is the built-up area?
The built-up area is the part of the municipality that the local government has designated as such. These are the developed or planned-for-development areas: residential buildings, public institutions, roads, parks, industrial zones—in short, everything that belongs to the “inhabited” part of the municipality.
Designation as an inner area is an official procedure ordered by a resolution of the representative body. This is not an automatic process: it generally occurs when the area becomes suitable for public utilities and development, such as when a new residential park or industrial zone is established.
3. What is an outer area?
Outlying areas are the totality of land parcels located within the administrative boundaries of a municipality but outside the built-up area. These are typically areas under agricultural cultivation: arable fields, meadows, pastures, forests, or agricultural operations.
An outlying area is therefore not “located in another municipality,” but belongs to the same municipality; it is simply an area not intended for development.
4. What is a private garden?
A private garden is a special category that historically forms part of the outskirts, but in many ways serves as a transition between the inner city and the outskirts.
In the past, private gardens were areas designated for small-scale gardening located on the outskirts of towns and villages. Owners grew grapes and fruit here and built small weekend cottages and wine press houses. Even today, many people use these properties as vacation homes. However, if someone wishes to live there permanently, they must apply for reclassification as an inner-city area or for exemption from cultivation.
We can determine whether a given property is classified as an urban area, rural area, or enclosed garden based on its title deed. Before a sale, it is strongly recommended to verify the property’s location using a current title deed and to decide (in part) based on that whether you wish to purchase the property.
In addition to the above, the property title deed contains further important information, particularly regarding the identities of the owners and any encumbrances registered on the property.
Before proceeding with the sale, be sure to obtain detailed information and, if necessary, seek advice from our experts.