The National Bank of Hungary (MNB) projects the number of home completions will fall in 2020 and 2021, then rise in 2022, lifted by recently announced incentives to make residential developments in brownfield areas, state news wire MTI.
In a biannual report on the home market published on Tuesday, the MNB projects home completions will drop to 18,500 this year, down from 21,100 in 2019, the last year a temporary reduction in the VAT rate on home construction was in force.
The central bank sees the number of home completions falling further to 15,500 in 2021, before picking up to 16,000 in 2022, as homes built in brownfield areas are finished.
The government announced in April that it will lower the VAT rate for residential developments in areas that it designates "rustbelt" zones from 27% to 5%. The measure is one of many intended to ease the economic impact of the coronavirus crisis.
The report estimates that in Budapest alone there are 323 groups of contiguous brownfield plots with a combined area of 2,945 hectares. Plots in District XXI have a combined area of 467 hectares, plots in District X have an area of 346 hectares and plots in District IX have an area of 329 hectares.