Analyst: Government incentives boost home construction

Sustainability

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The increase in the number of newly built homes and permits for dwelling construction announced today was fueled in part by government efforts in February to clarify the system that provides financial incentives for families to build homes, a property analyst said in a statement sent to the Budapest Business Journal.

The governmentʼs CSOK program gives families who qualify subsidies of up to HUF 10 million, as well as low-interest loans of as much as HUF 10 million, for the purchase or construction of a new home.

László Balogh, an analyst at ingatlan.com said this program is one reason for data published today by the Central Statistical Office showing that the number of new dwellings built in the first half of the year was 3,420, up 11% from last year, and the number of dwelling permits and declarations on the construction of residential buildings was 13,236, or twice as many as in the first half of the last year.

The analyst expected further recovery on the market based on the significant rise in the number of new permits, the statement said. As the majority of houses currently being built will be finished later, the market is expected to see a major uplift in 2017, the statement said. Based on data by ingatlan.com, the statement said, demand is increasing for newly built homes, and the number of dwellings on offer is on the rise.

“The increase in the number of inhabited new homes show that not only permits have seen a change, but also the dwellings are taken over for real, and this is also supported by the data at ingatlan.com, which shows that the number of newly built or under construction dwellings were up by 25% in year-on-year terms,” Balogh said.

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