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Minister Augurs Drop in Annual Home Construction

Construction

Photo by JU.STOCKER / Shutterstock.com

The number of new homes built in Hungary this year could fall to 17,000 and drop to around 10,000 in 2023, Economic Development Minister Márton Nagy said at a conference organized by construction association Évosz on Tuesday, according to a report by state news wire MTI.

Nagy said the number of new homes built in 2024 could fall under 10,000.

He noted that the annual number of new homes built had reached 40,000 during the first Orbán government and said a reform of the home market is needed to reach that level again, in the mid- and long-term.

There were just under 20,000 homes built in Hungary in 2021.

Nagy said Hungary's construction sector could grow around 4.5% this year but predicted "lean years" in 2023 and 2024, acknowledging challenges posed by higher energy, payroll, and material costs, dearer financing, postponed state investments and weakening consumer demand.

He said state investment levels would fall from a peak of HUF 3.5 trillion in 2020 to a "healthier" level of HUF 2.7 tln this year, adding that 60%-70% of those investments are construction projects. He said construction companies' stock of new orders could fall back to 2017 or 2018 levels by the end of the year.

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