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.
The difference between different areas of the country is also very striking. In South Transdanubia, for example, the number of newly handed over apartments jumped 2.3 times, but this is only thanks to the settlements on the shores of Lake Balaton. In Pest County, growth of 21 percent was recorded, meaning that the housing market in the Budapest agglomeration continues to boom, while the number of new homes fell by 48 percent in the Northern Great Plain, 40 percent in the Southern Great Plain, and 46 percent in Central Transdanubia.
It is also striking how a few large investments are shaping the housing market within Budapest. The fact that the number of permits issued has almost tripled is largely due to a few such projects: nearly 40% of all new housing construction permits in the capital were issued in Újbuda, and the same percentage in Kőbánya, Angyalföld and Csepel combined. This change is also reflected in the fact that, in contrast to 61 percent last year, 66 percent of new homes are now being built by companies rather than private individuals.
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