Based on May data from the Hungarian Central Statistical Office (KSH), there are no signs of a turnaround in the construction industry yet: production volume fell by 10.7% year-on-year and by 6.5 % compared to the previous month. However, according to the local unit of Italian building materials manufacturer Mapei, the statistics do not yet reflect the trends ahead. The company believes that the growing order backlog, the expected availability of EU funds, and the resumption of government investments could point to a more favorable second half of the year for the sector.
“Until now, the construction industry has been trying to win a World Cup qualifier while playing with only ten players. Now, the player everyone has been waiting for – EU funds – can finally return to the field. Of course, this does not yet guarantee victory, but it can significantly improve the sector’s outlook,” according to Béla Markovich, managing director of the Hungarian subsidiary Mapei Ltd.
Despite the unfavorable market environment, the company’s first-half results show growth. The company’s domestic revenue reached HUF 20.6 billion in the first six months of 2026, which is 14.6% higher than a year earlier. Its export revenue rose to HUF 584 million, representing an 183.2% increase.
“Our first-half results are encouraging, but we believe that the truly important period is still ahead of us. If EU funds become available and major investments resume, the second half of the year could already lay the groundwork for an economic recovery,” Béla Markovich added.
The key question in the coming months will be the pace at which EU-funded investments get underway. These are expected to focus primarily on major infrastructure developments, rail and energy projects, and public building renovations. By contrast, the recovery in residential construction and private investment is expected to be more gradual, as these sectors continue to be driven primarily by the financing environment, investor confidence, and market demand.
According to Mapei, however, the economic impact of EU funds is expected to take effect by the end of 2026 and in 2027. Due to the time required for public procurement, planning processes, and construction, a substantial increase in investment volume may be incorporated into market performance only gradually.
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