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Expert: New home construction could rise 50% this year

The number of homes built in Hungary this year could rise 3,500-4,000 over the 7,600 completed in 2015, the head of construction business association EVOSZ said on Hungarian state-owned all news channel M1 late yesterday.

Interest has grown for new homes, and people are weighing the financing options and will approach contractors after they make a decision, László Koji said, according to Hungarian news agency MTI. 

The government recently introduced a number of measures that are expected to give the home construction market a boost. Among them is a new subsidy scheme for home purchases for families with children and a reduction in the VAT for home construction.

Koji said home building companies had lost about 80% of their market because of the downturn in home construction, and many went bust. Now, companies that have built just hospitals or schools could start building homes as the market adapts to the new demand, he added.

Koji proposed reintroducing VAT refunds for home renovations. The refunds worked very well in 1998-2002, he added.