Slump Continuing in Housing Construction

Construction

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In the first three quarters of 2023, 10,808 new homes were built in Hungary, 21% fewer than a year earlier, the Central Statistical Office (KSH) says.

Compared to Q1-Q3 2022, in Budapest, there was a 29% drop, with 3,234 dwellings built. The number of dwellings built fell by 37% in the county seats, by 8.6% in other cities, and by 8.1% in villages.

The number of dwellings built by businesses fell by 22% and those built by natural persons by 16% year-on-year

Of the dwellings put into use in new residential buildings, 50% were in detached houses, 43% in multi-family buildings, and 3.4% in residential complexes.

The share of owner-occupied dwellings was 38%, and the share built for sale was 60%.

The average floor area of dwellings put into use increased by 4 sqm to 97.8 sqm.

The number of dwellings handed over decreased in all regions compared to the same period in 2022, with the largest decrease in Northern Hungary (63%) and the smallest in the Pest region (1.6%).

Home Building Permit Issues Take Nosedive

The number of homes to be built on the basis of building permits and simple declarations was 14,894, about 43% fewer than in the first three quarters of 2022. Some 34% of the new dwellings are planned to be built in the capital. Construction sentiment has declined in all settlement categories. Downwards in the hierarchy of municipalities, the decline is increasing: 39% fewer dwellings are planned in the county seats and in the capital, 43% fewer in other cities, and 49% fewer in villages.

The number of dwellings to be built on the basis of building permits and simple declarations decreased in all parts of the country. At the regional level, the largest decrease occurred in Southern Transdanubia (57%), including Baranya County (67%). The number of building permits for dwellings decreased by 50% in both the Pest and Western Transdanubian regions.

At the level of statistically large regions, the decline in the number of planned dwellings was 43% in Central Hungary, 47% in Transdanubia, and 31% each in the North and the Great Plain regions.

Compared to the same period in 2022, based on the new building permits issued, 43% fewer, a total of 6,297 residential buildings are planned to be built in the country. The number of non-residential buildings planned nationally was 3,070, also down from a year earlier.

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