Home building permits down 20.4% in Q2 2006

Sustainability

Hungary's building market continued to show signs of a slowdown in January-June 2006, with the number of new home building permits issued in the period decreasing 20.4%, and the number of new homes down 13.8% from a year earlier, the Central Statistics Office (KSH) reported today. There were 19,803 new home building permits in January-June 2006 and 12,995 new homes came onto the market. Just in Budapest, the number of home building permits issued decreased 32.4% to 5,167 during the period, and the number of completed homes fell 21.3% to 3,635. The number of building permits has declined since late 2003 when the government placed more restrictions on state-subsidized home loans. Observers add, however, that the home market has started showing signs of saturation. Permits were issued for a total of 1.867m square meter in January-June 2006, down 15.9% from the same period a year earlier. The average area of homes was 90.1 square meter, 0.5 square meter more than in the same period a year earlier. Homes of less than 60 square meter accounted for 34.2% of the permits issued, up from 33.7% a year earlier. Homes larger than 100 square meter accounted for 32.8% of permits issued, up from 31.2%. About 52.3% of all new homes in the market were built by the families who live in them, up from 51.3% in the H1 last year. Homes built for sale accounted for 46.2% of all homes built, up from 45.5% a year earlier. Home built to rent accounted for the rest of homes. The number of permits issued outside of the capital rose only in the central and western Transdanubian region, but the number of completed homes rose in all regions. Non-residential building permits issued in January-June numbered 3,987 and were for a combined 1.850.000 square meter. The number of permits dropped 19.6%, but the total area increased 1.4% compared to the same period a year earlier. Industrial facilities accounted for 593 of the permits and 921,000 square meter, Farming buildings accounted for 800 of the permits and 288,500 square meter, and commercial buildings accounted for 296 permits and 229,100 square meter. (Econews)

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