What are terrace houses?
Literally, one can do it, but the code requirements around here make it very expensive to work with, and the valley has to have a slope. One can't just slide a hip roof halfway into a gable side slope. The result would be a level valley that would not drain completely after rain or snow. The valley needs a ramp built into it. The yard may as well slope toward the house on all four sides otherwise.
Oh, yeah. In snow country you can get a roof to cave in that way.
Here in Florida the inspector is hyper-sensitive about roof construction. We have these fun events called Hurricanes here.
There are no hips on the OP's example photo. I wonder if the correct roof type option was chosen in the drawing.