The number of permits issued for homes in the capital slipped 16.1% to 1,743, while the number given for homes in county seats and cities with populations of more than 50,000 fell 27.5% to 905.

The number issued in smaller cities plummeted 50.1% to 1,287. In the country's smallest settlements, home-building permits fell 49.7% to 1,054.

Last summer, Hungary's government announced a two-year extension of a temporary 5% preferential VAT rate for home construction until the end of 2024.