Low Housing Construction Activity in Q1
In the first quarter of 2024, some 2,779 new dwellings were built, 23% fewer than a year earlier, according to data by the Central Statistical Office (KSH).
In the capital, the total number of dwellings built was 35% lower at 910. The number of dwellings built in towns of county rank was 7.7% lower than in the first quarter of 2023, while it was 22% lower in other towns, and 16% lower in villages.
Housing construction in Budapest remains highly concentrated, with nearly half (48%) of new dwellings delivered in District XI.
The number of dwellings built in the Pest region was 15% lower than in the same period last year.
Overall, housing construction in rural regions declined. At the same time, an outstanding number of new dwellings in some county seats also contributed to the growth of the region. Kecskemét accounted for half (52%) of the total housing construction in the Southern Great Plain region and Székesfehérvár also played a significant role in the development of housing construction in Central Transdanubia.
The county of Győr-Moson-Sopron, which plays a dominant role in housing construction in the Western Transdanubian region, barely exceeded half of the Q1 2023 figure, resulting in a 39% decline for the region as a whole.
The share of dwellings built by natural persons increased from 34% to 38%, while the share built by businesses decreased from 65% to 61% compared to the first quarter of 2023.
Approximately 51% of new dwellings put into use in new residential buildings are in detached houses, 46% in multi-dwelling buildings, and 0.8% in residential complexes. Not a single dwelling in a residential complex was handed over in Budapest or in any of the towns of county rank.
The average floor area of dwellings put into use increased by 1.2 sqm to 96.5 sqm compared to the 1st quarter of 2023.
The share of dwellings built for sale was 60%, while the share of dwellings built for own use was 39%, a decrease of 3 percentage points in the former category and an increase of 5 percentage points in the latter compared to the same period last year.
Regional Differences
At the national level, the number of dwellings to be built on the basis of building permits and simple declarations was 4,524, 9.3% fewer than a year earlier. There were different changes by settlement category, with a decrease in Budapest and the villages (47% and 10%) and an increase in towns of county rank and other towns (42% and 6.3%). Among towns of county rank, the nearly 800 dwellings permitted in Debrecen played a decisive role in the evolution of data for this settlement category.
This has also underpinned growth in the region as a whole, with 2.3 times as many homes meant to be built in the Northern Great Plain as a year earlier. In addition, only in Southern Transdanubia has the number of permits issued increased (19%), with a higher number of dwellings expected to be built in Paks.
Builders made use of the simple declaration option in 46% of cases.
Compared to the same period of 2023, based on the new permits issued, 8.8% fewer, a total of 1,909 residential buildings are planned to be built in the country. The number of planned non-residential buildings was 853.
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