More new homes, decline in construction sentiment

In the first half of 2018, 6,517 new dwellings were built in Hungary, 30% more than a year earlier. Based on issued dwelling construction permits and simple declarations, the number of homes to be built fell by 8.9% to 18,066 compared to the first half of 2017, the Hungarian Central Statistical Office (KSH) reports.

KSH data sufest that 30% more dwellings were built. Budapest and the villages showed an even larger 1.5-fold increase.

Dwelling construction saw no change in the even distribution between individuals and enterprises.

54% of dwellings built in new buildings were put to use in detached houses, 6.2% in residents’ parks and 36% in multi-dwelling buildings.

The average floor-area of homes put to use increased by 5 sq. m to 101 sq. m.

The total number of dwellings to be built based on issued dwelling construction permits and declarations decreased by an average of 8.9% to 18,066. Budapest saw a 27% fall, towns of county rank and villages a 3.5% drop, while other towns a 17% rise in the number of dwellings to be built. Builders used simple declarations in 42% of cases. This share was 7.1% in Budapest and grew higher moving towards lower level territorial units reaching 84% in villages.

Based on new construction permits (declarations), 1.8% less, i.e. a total of 6,717 residential buildings are planned to be built, while the number of permits issued for non-residential buildings decreased year-on-year by 16% to 2,033 units.