Despite the housing shortage, there is a sharp drop in housing construction in Budapest

The number of home building permits issued in Hungary edged down 2.3pc year-on-year to 14,551 in Q1-Q3, data released by the Central Statistics Office (KSH) on Tuesday show.

The number of permits issued for homes in the capital plunged 33.5pc to 3,391 while the number issued for homes in county seats and cities with populations over 50,000 rose 7.1pc to 3,099. According to KSH, the number issued in smaller cities climbed 14.5pc to 4,339. In the country’s smallest settlements, the number of home building permits issued increased 19.6pc to 3,722.

The number of home completions fell 19.4pc to 8,709. Home completions in the capital dropped 14.6pc to 2,761. The number declined 14.7pc to 1,696 in county seats and cities with populations over 50,000 and was down 29.6pc at 2,223 in smaller cities. In Hungary’s smallest settlements, the number decreased 16.4pc to 2,029.

Compared to the same period in 2023, the number of housing construction permits issued decreased in the Southern Great Plain (-14%) and in Central Transdanubia (-12%), outside Budapest. The largest increases were recorded in Southern Transdanubia (52%) and Northern Great Plain (51%). In these two regions, the role of housing developments related to investments in Paks and Debrecen is dominant.

Detached homes accounted for 53pc of completions. Homes in multi-storey buildings with multiple dwellings made up 42pc of the total and homes in residential parks 2pc.

The average new home size was 99sqm.

The share of homes built by businesses stood at 58pc.

The data show 1,063 homes were demolished or condemned in H1.

read also: 

• Renting in Hungary: These are the most important things you should know as a foreigner
• Surprising new trends that will revive the Hungarian housing market in 2025