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Professional assoc augurs construction industry recovery in 2021

Construction

Photo by Virrage Images / Shutterstock.com

The output of Hungary's construction industry could reach HUF 4.5 trillion this year, returning to 2019 levels, the chairman of industry association ÉVOSZ said on Monday, according to a report by state news wire MTI.

László Koji said business would be supported by the temporary reduction in the home construction VAT rate to 5% and the launch of home renovation subsidies from the start of the year.

He said new home handovers could reach an annual 25,000 by the end of 2022, when the home construction VAT rate reverts back to 27%, while home renovations could reach 220,00-250,000 a year.

He added that home renovations need to remain over 200,000 a year if Hungary's stock of 4.3 million homes is to be maintained.

ÉVOSZ is urging the government to streamline the process for home building permit applications in order to eliminate bottlenecks, especially for the construction of big, multi-home residential developments.

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