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Aims: The restoration of unused urban‐industrial areas has great conservation potential as it can sometimes create a win‐win situation in terms of nature conservation and economic benefits. Financial data of restoration projects are rarely published. To close this gap, we report the cost–benefit analysis of different landscaping methods used in the greening of the outskirts of a factory industrial area. Location: The study area is located in a factory area in Nyíregyháza, Nyírség, Hungary. Methods: In this study, we compare the costs of the implementation and maintenance of three different types of grasslands (intensively and extensively managed park lawns and semi‐natural grassland, called eco area) and the ecological benefits in terms of vegetation and potential for pollinators. Results: The implementation and maintenance costs of the extensively managed park lawn were more than ten‐fold higher than that of the eco area, despite the higher price of native plant material. The construction of the extensive park lawn is the cheapest, but the eco area pays off in ca. 1.5 years compared to it, taking into account the lower maintenance costs. Seven years after implementation, the eco area is the most species‐rich, hosting the highest number of natural constituent species, but with similar vegetation cover as in the intensively managed park lawn without costly maintenance. The cover and species richness of legumes and forbs are also higher in the eco area, ensuring a food source for pollinators. Conclusions: Our results support that introducing species‐rich and diverse grasslands with native, habitat specialist species as an alternative to traditional landscaping in urban‐industrial areas can be economically and ecologically rewarding. The higher costs of planning, plant material, and implementation pay off in a short time due to low maintenance costs and can lead to a win‐win situation for nature as well as for the local economy. [ABSTRACT FROM AUTHOR]

Questions: Woody encroachment affects many open habitats from semi‐deserts to wetlands and grasslands. We aimed to study the effect of native woody encroachment on grassland plant biodiversity in loess steppe fragments by analysing the vegetation composition of grasslands subjected to increasing levels of encroachment. We studied both ancient and restored grasslands with the following research hypotheses: (a) increasing woody encroachment decreases total diversity and the species richness of dry‐grassland species; and (b) the effect of woody cover on grassland biodiversity differs between ancient and restored grasslands. Location: South‐Eastern part of Transdanubia, Hungary, Central Europe. Methods: Altogether 63 loess grassland fragments were selected for the study. The percentage cover of trees, shrubs and herbaceous vegetation were recorded in 400‐m2‐sized plots (n = 110). The effects of woody encroachment and grassland age on diversity, total species richness of the herb layer, and richness of dry‐grassland species were analysed. Results: We found that woody encroachment affected the total richness of the herb layer and the species richness of dry‐grassland species. For most of the listed variables, lowest values were found for the highest woody encroachment groups. Grassland age affected the species richness of the herb layer and that of dry‐grassland species; lower values were detected in restored grasslands. In restored grasslands, Shannon diversity and species evenness were lower, while Berger–Parker dominance was higher than in ancient grasslands. Species composition and richness displayed a relatively high resistance to moderate woody encroachment; the highest decrease in diversity was detected at a high level of woody encroachment (>52% of woody cover). Conclusions: We can conclude that low to moderate woody encroachment cannot be simplistically regarded as degradation. Results suggest that moderately encroached loess grasslands can be easily restored by the suppression of woody species, as their species pool still contains many dry‐grassland species targeted for restoration. [ABSTRACT FROM AUTHOR]