Govʼt support could boost home construction market 20%
The governmentʼs new home creation and renovation support measures could boost the home construction market by up to 20% and home renovation projects in the coming two years by 50%, according to joint research by economic research company GKI and construction parts manufacturer Masterplast, profitline.hu reports.
The reintroduction of the preferential 5% VAT rate on new home construction from January 2021 is expected to give new momentum to home building companies and ease the projected decline in housing construction.
Having upgraded its earlier forecast, GKI now expects 15,000-17,000 homes to be completed next year and 18,000-20,000 in 2022 compared to 12,000-14,000 in 2021 and 15,000-17,000 in 2022 as earlier forecast.
The new home renovation program is also expected to have a significant impact as the combined amount of the subsidy and the contribution of the household can reach HUF 6 million.
Families are expected to take out a loan for the latter in half-to-two-thirds of the cases, according to banking sources. GKI expects up to 120,000-150,000 families to avail themselves of this subsidy in 2021 and in 2022.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.