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Housing market grows slowly in Q1-Q3 2019

The housing market in Hungary saw a moderate expansion in the first three quarters of the year, with significantly higher growth in Budapest, according to data released by the Central Statistical Office (KSH).

The KSH says that in Q1-Q3 2019, a total of 10,302 new dwellings were built, about 0.8% more than a year earlier. Based on issued residential construction permits and simple declarations, the number of homes to be built grew by 2.7% compared to the corresponding period of last year, to 27,388.

During the first nine months, about 17% more homes were built in Budapest year-on-year. In towns of county rank and villages, the number of new dwellings completed slightly increased, while it fell notably (by 18%) in other towns.

In Pest County, the number of dwellings built continued to be outstanding, but decreased by 24% compared to Q1-Q3 2018.

The proportion of dwellings built by individuals decreased by 4 percentage points, from 48% to 44%, while that of dwellings built by enterprises grew from 50% to 53%. Some 55% of homes were built for sale, 42% for own use, and 1.6% for rental.

Some 49% of dwellings put to use in new residential buildings were in detached houses, while 43% were in multi-dwelling buildings, and 4.8% in residential parks. The average floor area of homes put to use fell by 3 square meters to 97 sqm.

According to residential construction permits and declarations, the number of dwellings to be built grew by 22% in Budapest, but decreased by 5.3% in county towns and by 12% in other towns. Builders used simple declarations in 45% of cases. This share was 6.6% in Budapest, increasing towards lower-level territorial units, and exceeding 92% in villages.