Significant rise in Hungary’s new home market

The number of home building permits issued in Hungary rose by an annual 15.8 percent to 25,984 in the first three quarters of this year, the Central Statistical Office (KSH) said on Friday.

The number of permits issued for homes in Budapest went up by 99.3 percent to 8,400, while the number issued for homes in county seats and cities with populations over 50,000 edged up 1.0 percent to 4,517. In the country’s smallest settlements, the number of home building permits issued slipped 2.0 percent to 6,161.

Late in July, Hungary’s government announced a two-year extension, until the end of 2024, of a temporary 5 percent preferential VAT rate for home construction. The number of home completions rose by 7.7 percent to 13,617 in Q1-Q3. Home completions in the capital fell by 10.1 percent to 4,533, but rose everywhere else.

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Detached homes accounted for 46 percent of completions. Homes in multi-storey buildings with multiple dwellings made up 42 percent of the total and homes in residential parks 9 percent.

The average new home size was close to 94 sqm, nearly 7 sqm more than in the same period a year before. The share of homes built by businesses stood at 62 percent.

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Source: MTI