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Number of homes built falls in Q1 2022

Construction

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Some 4,528 new dwellings were built in the first quarter of 2022, 26% fewer than a year earlier, according to data published by the Central Statistical Office (KSH). On the other hand, the number of homes to be built on the basis of issued construction permits and simple declarations rose to 8,001, 15% more than in the same period of 2021.

In the capital, the number of dwellings put into use fell by 9.9% to 2,440. Housing construction fell in all categories of settlements: 38% fewer dwellings were built in towns of county rank, 43% fewer in other towns, and 35% fewer in villages.

The share of dwellings built by natural persons continued to fall, to 25%. The share of those built by businesses was 73%.

Approximately 32% of the new dwellings put into use in new residential buildings are in detached houses, 53% in multi-dwelling buildings and a further 13% in resident’s parks. The increased share of the latter can be linked to some major investments in the capital.

The average floor area of dwellings put into use increased by 1.1 m2 to 81.4 m2 compared to the first quarter of 2021.

The proportion of dwellings built for sale was 74%, for owner-occupation 24% and for renting 1.5%.

In Pest County, the number of dwellings built fell by 42%, and Győr-Moson-Sopron County, which previously built a larger number of dwellings, also saw a 45% drop. The 1,400 or so dwellings built in counties outside the central metropolitan region were less than two-thirds of those built a year earlier.

In the capital, the number of homes to be built nearly tripled from the previous low base, but this figure of over 2,000 is still below the 3–4,000 level of previous years, KSH notes.

Towns of county rank are down 27%, other towns are stagnating (–2.2%) and villages are up 14% compared to the first quarter of 2021. Builders made use of the simple declaration option in 55% of cases.

The number of building permits issued decreased by 14% in Pest County and remained the same as a year earlier (4,300) in counties outside the central metropolitan region.

Compared to the same period in 2021, the number of new construction permits issued in the country is 1.8% lower, with a total of 3.799 residential buildings planned.

The total number of planned non-residential buildings nationwide is 1,159, about 31% more than in the first quarter of 2021.

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