Hungary’s construction output climbs by over 30 pc in November – UPDATE

Output of Hungary’s construction sector rose by an annual 30.7 percent in November, the Central Statistical Office (KSH) said on Monday. The increase came from a low base.

Output of the building segment rose by 29.1 percent during the period. Output of the civil engineering segment climbed by 33.9 percent.

KSH said output of the building segment was driven by residential and school construction, as well as the construction of industrial buildings. In the civil engineering segment, construction of highways and railways supported the increase.

Output at current prices was up at 261 billion forints (EUR 844.5m) from 186.4 billion in November 2016.

Stock of orders was up 110.3 percent at the end of November from twelve months earlier, albeit from a low base.

Orders in the building segment were up by 30.2 percent and orders in the civil engineering segment increased by 161.6 percent.

New orders were up 11.7 percent, falling by 8.2 percent in the building segment and rising by 43.4 percent in the civil engineering segment.

Construction sector output was up 28.7 percent year-on-year in January-November.

Commenting on the data, Economy Minister Mihály Varga told public television that

government measures such as the home purchase subsidies (CSOK), state-funded investments and VAT cuts in the sector have contributed to an upswing in home construction.

The government is to launch a 20 billion forint equipment procurement programme in the construction sector to ease shortage of labour in SMEs with technology, he said.

As we wrote on Saturday, new plans were born during a design contest announced for the renovation of the Király Thermal Bath in Budapest. It is high time that the bath, one of the most well-known recreational institutions of the capital and also one of the worst in condition, gets renewed based on the winner plan of the 3h Architectural Office. Here are the details of the future renovation!

Also we wrote before, the permission for the construction of a new metro line to Rákosmente is being prepared, and if everything goes well and all the documents needed for the construction permit are collected by 2019, the construction can start after 2020. Read more HERE.

UPDATE

Dávid Németh, analyst at K and H Bank, said that 2017 brought a spectacular rise in construction after the 2016 ebb. Rising prices stemming from shortage of workforce and uncertainty about whether the VAT cut on home constructions will be prolonged may curb growth, he warned.

András Horváth of Takarékbank estimated a 28 percent overall growth for 2017. Shortage of manpower, which may impact the trend, hits especially small enterprises, he said.

Lászlo Koji of the union of construction entrepreneurs (EVOSZ) said that the stock of orders indicates a two-digit growth for 2018.

Photo: MTI

Source: MTI