The volume of construction output, based on raw data, was 20.1% lower in May 2020 compared to the same period of the previous year, according to data released by the Central Statistical Office (KSH).
KSH notes that the effects of the economic processes altered by the coronavirus epidemic were significant in May.
Output decreased in both main groups of construction: in the construction of buildings by 24%, in civil engineering by 15.6%.
Based on seasonally and working-day adjusted indices construction output lessened by 20.3% compared to the April data.
The volume of new contracts decreased by 7.4%. Still, the volume of new contracts concluded for the construction of buildings was 47.6% higher than the low base of the previous year, while their volume for civil engineering works was 29.1% lower than one year earlier.
The volume of the May end-of-month stock of contracts at construction enterprises was 14.5% lower than at the end of May 2019. The volume of contracts increased by 14.1% for the construction of buildings and decreased by 25.6% for civil engineering works.
In the first five months of 2020 construction output lessened by 5.6% in the first five months compared to the same period of 2019.
"Although the adverse economic effects of the coronavirus epidemic can also be felt in the construction industry, as supply chain disruptions and the return of foreign construction workers to their homes caused temporary setbacks, the sector proved to be resilient compared to other industries," says Futureal CEO Tibor Tatár. "The downturn in the industry caused by the health emergency came from a previously very high production base."
In Hungary, real estate developments continue to contribute to increasing the resilience of the domestic economy. Premium office building developments have not stopped either, as tenants continue to look for quality office space, however excellent location, easy accessibility, and a wide range of services are becoming even more appreciated. In the new era following the health crisis, a healthy, safe, and people-centered work environment will become part of the basic decision-making criteria," Tatár adds.
He also argues that tenants and landlords must work together closely in order to satisfy the rapidly evolving requirements, which are mainly focused on protecting the health of employees.