“Zártkert” and property purchase – what is an enclosed garden in Hungary?

• Hungarian land classification is legally binding
• Zártkert in Hungarian land classification
• Benefits of buying a zártkert property
• Why are zártkert properties like this?
• FAQ

Hungarian land classification is legally binding

In Hungary, every piece of land has a legal classification, which is indicated on the title deed. This classification determines how the property may be used. Other uses may be allowed only if you can get the property reclassified.

Zártkert in Hungarian land classification

Agricultural land

Zártkert means “enclosed garden”, and it is technically agricultural land. This means various rules will govern the sale and use of this type of property.

• Agricultural land normally has a designated purpose such as arable land, pasture, orchard, vineyard, garden, or forest. Even if it is not actively cultivated, it must be taken care of, e.g. owners are not supposed to allow weeds to grow on their lands.
• Acquiring agricultural land is heavily restricted, and it is not available at all to natural persons who are not EEA nationals.

As other agricultural land, zártkert can be withdrawn from cultivation. The process depends on whether the local government has a simplified procedure in place, but even that can be lengthy (and costly). However, withdrawing the zártkert from cultivation will lift several restrictions from it. This status is also indicated on the title deed.

Outskirts

As agricultural land, zártkert belongs to the outskirts of a town. The local government is not required to take care of services the way it does for urban areas, which might affect roads, public transport options, and the availability of utilities (electricity, water, gas).

Buildability

The buildability of a zártkert property depends on size, local regulations, and whether the property is withdrawn from cultivation or not:

• On properties below 720sqm (7,750sqft), buildable area is max. 30sqm (320sqft)
• On properties above 720sqm (7,750sqft), buildable area is typically around 3%
• If the property is withdrawn from cultivation, buildability is up to 10% regardless of plot size.

If you want to build on the property you are purchasing, it is essential that you check both the title deed and local regulations in advance.

Pre-emption rights

Unless the zártkert you are interested in is withdrawn from cultivation, local farmers, the local municipality, and the Hungarian State have the right to buy it when it goes on sale. The planned sale needs to be published on the physical and online advertisement boards of the local government, and then you need to allow those with pre-emption rights 30 days to decide if they want to buy the property. If they do, you will not be able to purchase the property.

Of course, if the property is in fact withdrawn from cultivation, pre-emption rights do not apply to it.

Benefits of buying a zártkert property

Most people choose to buy zártkert properties for the environment. They are typically on the outskirts of towns, “in the green”, with lots of trees, nature all around. These areas are typically more peaceful and quieter than urban areas.

Because of the limitations, these “enclosed gardens” also tend to be cheaper than property in urban areas. If they get withdrawn from cultivation, their value may increase significantly, which creates a great opportunity for investment too.

At the same time, before buying zártkert property, it is imperative to check both the title deed and local regulations, and compare what is allowed to be there and what physically is there with what you envisioned for yourself. Zártkert properties often have buildings that should not be there, or they are not maintained in a way that matches legal requirements, which can cause problems in the long run.  

Why are zártkert properties like this?

Based on the above, the category of enclosed gardens seems a bit of a mess, right? That is true – this is why this category is only a legacy category, meaning that property cannot newly be classified as a zártkert. However, there are still around 200,000 hectares of land classified as enclosed garden in Hungary, which means about 1.15 million individual pieces of property. Since these are all pieces of agricultural land, they are heavily protected by Hungarian law, and their reclassification or repurposing is not that straightforward.

To see why zártkert properties are like this, we need to take a look at the history of this type of land. Already back in the 19^th century, seasonal workers at large estates were sometimes given small plots to encourage them to stay around. The plots were typically used as vineyards or orchards, but it could never be big enough to fully support a family (otherwise owners would work on their own farms instead of at the large estates).

After World War II, in the socialist era, most of the agricultural land was government property, and cultivated at a large scale. However, some types of produce are better cultivated at smaller scales, so the institution of the zártkert was born: agricultural land owned by individuals who cultivate fruits, vegetables, grapes, or similar things. Over the years, however, these strips of land slowly turned into hobby gardens with weekend homes, and the weekend homes slowly turned into more permanent buildings (sometimes illegally – which is why you need to be careful when you buy property in the outskirts of any town).

Property purchase with Helpers Hungary

Whether you are looking for property for your new home, as investment, or with Hungarian residency in mind, we are happy to help you out. Our curated portfolio includes premium listings that can fit either of the above purposes, but we can also provide assistance if you want to realize your dreams through the purchase of property found elsewhere.

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