Industry insiders see home construction and renovation as well as building investments in the industrial and logistics sectors driving growth. The civil engineering segment is not expected to expand as state and municipal council investments wind down ahead of general elections in the spring, albeit freeing up capacity for private sector projects.
ÉVOSZ said supply and demand could "come close to balancing out" by the end of 2022.
At present, around 35,000 homes are under construction, of which close to 25,000 could be completed in 2022. Around 250,000 homes could be renovated during the year.
ÉVOSZ acknowledged the positive impact of the National Bank of Hungary's Green Home Programme which provides 0pc refinancing for lenders for retail loans for high-energy efficiency homes.
The association said the pandemic could cause delays and dearer prices, while the shortage of skilled labor and rising building materials prices remain challenges. It added that building material prices could increase 10-15% in the first quarter alone
Construction sector output rose 11.2% year-on-year in January-November, the latest data released by the Central Statistical Office (KSH) show.
The output of the sector contracted 9.7% in 2020, after climbing 20.4% in 2019.
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