During the first six months of 2024, only 6,027 new dwellings were constructed, marking an 18% drop from the same period in 2023. This downturn was mirrored in the number of construction permits and simple declarations issued, which totaled 8,972—also an 18% decrease year-on-year.
The decline in housing construction is evident across various regions of Hungary, with the capital city, Budapest, experiencing an 8.3% reduction in the number of new dwellings, amounting to 2,124 units. The towns of county rank witnessed a 20% drop, other towns saw a 27% decrease, and villages experienced a 19% decline in new housing compared to the first half of 2023.
Despite the overall slump, District XI of Budapest stood out with a concentration of new housing activity, accounting for 46% of new dwellings in the city. Meanwhile, the Pest region recorded a 20% reduction in housing completions.
Interestingly, the Southern Great Plain region defied the trend with a 15% increase in new housing constructions, driven by a significant recovery in Kecskemét, where 265 new dwellings were built in the first half of the year—the highest among rural towns.
The data reveals that the distribution of housing construction types has remained relatively stable, with natural persons responsible for 38% of new dwellings, the same as the previous year. Enterprises, however, saw a slight decline from 62% to 60%.
Half of the new dwellings are in detached houses, while 47% are in multi-storey, multi-dwelling buildings. Residential complexes accounted for only 0.8% of new dwellings. The average floor area of new dwellings decreased slightly by 1.6 square meters to 95.4 square meters compared to the first half of 2023.
The proportion of dwellings built for sale was 59%, with those for owner-occupation standing at 38%, showing a slight shift from the previous year’s distribution of 60-37%. Housing construction for rent remains rare but saw a slight increase to 2.7%.
The total number of dwellings to be built based on construction permits and simple declarations stood at 8,972, reflecting an 18% decline from the previous year. While permits for one- to two-apartment buildings saw a 5% increase, those for multi-apartment buildings plummeted by 34%.
Budapest experienced a particularly sharp drop in multi-apartment building permits, down by 70%, resulting in a 63% overall decrease in construction permits issued in the capital during the first half of the year.
However, there was a slight increase in the number of housing construction permits in towns of county rank (17%) and other towns (18%), while villages saw a marginal decline of 0.7%.
Overall, the construction of 4,311 residential buildings is planned, a modest 1.7% increase from the first half of 2023. In contrast, the number of non-residential buildings to be constructed decreased by 17%, with their total floor area reducing by 44%.
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