Unprecedented output growth in Hungary’s construction sector

In August 2017, output volume in the construction sector grew by 36.8 percent year-on-year, a record high figure. The sector may continue to expand at a robust pace, Minister for National Economy Mihály Varga said, commenting on the latest construction sector data published by the Hungarian Central Statistical Office (KSH) earlier yesterday.

The sector’s growth is being increasingly underpinned by the Family Housing Allowance scheme;

the number of newly built homes was up by 46 percent and the number of building permits increased by more than 40 percent year-on-year, in the observed period, he added.

The pace of growth was outstanding in August, also when compared to data from the V4, and it is likely to place us on top of the EU ranking when comparable data become available, Mihály Varga noted. Since 2010, output at the domestic construction sector has increased by more than 20 percent. As far as construction sector categories are concerned, output in the construction of buildings was up by 46.8 percent year-on-year, due mainly to the building of industrial and storage facilities, and to a lesser extent, of sports facilities as well as educational and residential buildings.

The construction volume of civil engineering works increased by 24.1 percent

compared to the same period of 2016, driven mainly by road-, railway- and public utility projects.

Speaking of future expectations, the Minister said it was an encouraging sign that at the end of the month the volume of contracts had been up by some 90 percent year-on-year.

Within that, the volume of contracts for the construction of buildings and civil engineering works grew by more than 22 percent and 134 percent, respectively.

The number of newly built homes and building permits for homes show the robust expansion of residential property market,

the Minister pointed out.

Construction sector data also reflect the positive effect of some Government measures, such as the Family Housing Allowance or lower VAT on construction, on both the supply and demand sides, he stated.

Photo: MTI

Source: Ministry for National Economy