Housing construction down 29% in 2021

Construction

In 2021, a total of 19,898 new dwellings were built in Hungary, about 29% fewer than in 2020, according to data by the Central Statistical Office (KSH).

In Budapest, 7,038 dwellings were built, 11% more than in 2020. In all other settlement categories, the number of dwellings put into use significantly decreased: by 47% in towns of county rank, by 33% in other towns, and by 45% in villages.

The share of housing built by natural persons decreased from 47% to 35%, while the share built by businesses increased from 52% to 64% compared to 2020.

The share of dwellings built for owner-occupation fell from 45% to 34%, while the share of dwellings built for sale increased from 53% to 64% compared to the previous year.

Approximately 43% of the new dwellings put into use in residential buildings are in detached houses, 51% in multi-story, multi-dwelling buildings and 3.3% in resident’s parks.

The average floor area of dwellings put into use decreased by 7.3 sqm to 90.7 sqm compared to 2020.

The number of dwellings to be built on the basis of construction permits and declarations was 29,941, up 33% year-on-year.

The trend in the number of building permits is the opposite of the trend in the number of dwellings put to use: only in Budapest did the number of dwellings to be built decrease (by 14%), while the number increased in all other settlement categories. The increase was 35% in towns of county rank, 58% in the other towns, and 55% in villages.

The number of dwellings to be built increased in all counties outside Budapest compared to the previous year. For the first time since 2014, the number of dwellings to be built in Pest County (7,700) exceeded that of the capital (5,500).

Builders made use of the simple declaration option in 66% of cases. This rate is lowest in Budapest at 25% and highest in villages at 90%.

A total of 16,531 residential buildings are planned to be built, a 45% increase compared to 2020, issued new construction permits show. About 79% of them, a total of 13,133 units, are one-dwelling residential buildings.

Some 5,021 permits were issued for non-residential buildings, an increase of 25% compared to a year earlier. The increase was 28% in the category of industrial buildings, 40% in agricultural buildings, and 57% in commercial buildings.

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