Construction sector seeks financial relief and expanded programs to bolster home building in Hungary

Government schemes supporting home constructions and renovations strengthen the public’s confidence and the persistence of product manufacturers and contractors, construction industry association ÉVOSZ said on Thursday.

In order to lift home construction from its current low point, in addition to government programmes, market-based financing must settle down, which means interest rate of 5pc or lower, ÉVOSZ head László Koji was quoted in the statement.

Koji said currently home constructions in Hungary are not primarily limited by regulatory issues or lack of capacity, but by the lack of funds.

Domestically produced construction products and contractor capacity are available for the construction of 25,000 new homes, but according to ÉVOSZ’s expectations, only around 16,000 units are expected to be put into use this year, he added.

ÉVOSZ is urging the launch of reformed home renovation schemes as soon as possible and extending eligibility criteria to residential properties built before 2007. It also called for the re-launch the Green Home Construction Programme of the National Bank of Hungary to support the financing of newly built homes.

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