Surprising shift: Hungary’s new home construction falls while permits surge

Data released by the Central Statistics Office (KSH) on Tuesday show that Hungary’s new home construction slipped, but permits issued for residential construction climbed in the first quarter from the same period a year earlier.

The number of new homes handed over nationwide fell 2.7pc to 2,704. Home completions in the capital dropped 7.4pc to 843. The number declined 33.5pc to 415 in county seats and cities with populations over 50,000, but was up 29.2pc at 823 in smaller cities. In Hungary’s smallest settlements, the number edged up 2.5pc to 623. Detached homes accounted for 50pc of completions. Homes in multi-storey buildings with multiple dwellings made up 41pc of the total and homes in residential parks 4.5pc.

The average floor area of dwellings taken into use decreased by 1.9 m2 to 94.6 m2 compared to the first quarter of 2024. The average size of dwellings in the capital was 75m2. The share of homes built by businesses stood at 65pc. The data show that 283 homes were demolished or condemned.

The number of home building permits issued climbed 24.9pc to 5,651. The number of permits issued for homes in the capital was 2,674, 2.9 times more than a year earlier. The number issued for homes in county seats and cities with populations over 50,000 dropped 16.9pc to 1,070. The number issued in smaller cities fell 25.3pc to 1,022. In the country’s smallest settlements, the number of home building permits issued was down 6.5pc at 885.