According to the Central Statistical Office (KSH), 2,704 new dwellings were completed nationwide between January and March, a 2.7% drop year-over-year. Meanwhile, the number of housing units authorized for construction rose 25% to 5,651.
The capital city stood out as the clear engine of future growth. In Budapest alone, 2,674 dwellings received construction permits in Q1—nearly three times as many as in the same period last year. The bulk of these permits were concentrated in just four districts, with District XI leading the charge with almost 1,000 units, followed by Districts X, XIII, and XXI, which together accounted for another 1,000.
While permits soared, the actual number of homes completed remained subdued. Budapest registered 843 finished dwellings, a 7.4% decline from the previous year. Towns of county rank fared worse, with completions falling 33%. In contrast, housing completions rose 29% in smaller towns and 2.5% in villages—signaling a modest rebound in rural development.
Geographically, construction activity shrank sharply in Central Transdanubia and the Southern and Northern Great Plains, down 46%, 40%, and 48% respectively. However, Central Hungary defied the trend thanks to a 21% increase in Pest County, offsetting Budapest’s dip and resulting in an overall 4% regional increase. Western Transdanubia saw a robust 43% gain, while Southern Transdanubia’s 2.3-fold growth was limited to the Balaton area.
A growing share of new housing is being built by companies rather than individuals. The proportion of dwellings completed by enterprises rose to 66%, up from 61% a year earlier, while the share built by private individuals fell to 34%. Half of all new dwellings were in detached houses, while 41% were in multi-unit buildings and 4.5% in residential complexes.
The average floor area of new dwellings declined slightly to 94.6 square meters, down from 96.5 square meters in Q1 2024. In Budapest, the average was even lower at 75 square meters. The shift toward smaller, more affordable homes likely reflects increased developer activity in high-density areas.
Although Budapest saw an explosion in building permits, other regions posted mixed results. Permit volumes dropped in every other category of municipality: by 17% in county-ranked towns, 25% in other towns, and 6.5% in villages. An exception was Szeged, where permits were issued for 451 new dwellings, significantly offsetting declines elsewhere.
Outside the capital, permit activity rose in the Central Transdanubian and Southern Great Plain regions but declined in others. Northern Great Plain saw the steepest drop, with 71% fewer dwellings approved than a year earlier. Builders used the simplified declaration option in about 30% of cases.
While residential permitting showed resilience, non-residential construction struggled. A total of 1,846 new residential buildings were planned in Q1, 3.3% fewer than in 2024. Meanwhile, only 649 non-residential buildings received permits—a sharp 24% decline year-over-year.
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