The fall in home construction in Hungary has taken its toll on building materials maker, especially brick and ceramic companies, Hungarian Brick Association head Aladár Kató told Napi Gazdaság.
The domestic brick market is expected to contract a further 25-35% in 2010 as new home construction continues to decline, the paper said.
Tighter lending conditions for new homes, such as the elimination of forint currency-denominated loans, a lending rate of some 10% on forint loans and 40% down payments, are part of the reason behind the contraction on the brick market.. Exports have compensated for the drop only slightly.
About half of Hungary's brick-making capacity was shut down already last year, the paper said.
The number of home building permits issued in Hungary came to 4,376 in Q3, down 27.1% from the same period a year earlier, the latest data from the Central Statistical Office (KSH) show. Output of Hungary's construction sector fell 9.2% in September from the same month a year earlier, KSH said. (MTI – Econews)