Unstoppable decline in housing construction in Hungary

The number of home building permits issued in Hungary fell by 42.7 percent year-on-year to 14,894 in the first three quarters of this year, data released by the Central Statistical Office (KSH) on Monday show.

According to KSH, 10,808 homes were taken into use in the country, 21% fewer than a year earlier. In Budapest, there was a 29% drop, with 3,234 dwellings built. The number of dwellings built fell by 37% in the county seats, by 8.6% in other cities and by 8.1% in villages compared to the same period in 2022.

The number of dwellings built by businesses fell by 22% and those built by natural persons by 16% compared to Q1-Q3 2022

Of the dwellings put into use in new residential buildings, 50% were in detached houses, 43% in multi-family buildings and 3.4% in residential complexes.

The share of owner-occupied dwellings was 38%, and the share built for sale was 60%.

The average floor area of dwellings put into use increased by 4 m2 to 97.8 m2.

The number of dwellings handed over decreased in all regions compared to the same period in 2022, with the largest decrease in Northern Hungary (63%) and the smallest in the Pest region (1.6%).

The number of dwellings handed over fell by 19% in Central Hungary, 13% in Transdanubia and 36% in the Great Plain and North statistical large region.

The number of dwellings to be built on the basis of building permits and simple declarations was 14,894, 43% fewer than in the first three quarters of 2022. 34% of the new dwellings are planned to be built in the capital. Construction sentiment has declined in all settlement categories. Downwards in the hierarchy of municipalities, the decline is increasing: 39% fewer dwellings are planned in the county seats and in the capital, 43% fewer in other cities, and 49% fewer in villages.

The number of dwellings to be built on the basis of building permits and simple declarations decreased in all parts of the country. At the regional level, the largest decrease occurred in Southern Transdanubia (57%), including Baranya county (67%). The number of building permits for dwellings decreased by 50% in both the Pest and Western Transdanubian regions.

At the level of statistical large regions, the decline in the number of planned dwellings was 43% in Central Hungary, 47% in Transdanubia, and 31% in Great Plain and North.

Compared to the same period in 2022, based on the new building permits issued, 43% fewer, a total of 6,297 residential buildings are planned to be built in the country. The number of non-residential buildings planned nationally was 3,070, also down from a year earlier.

As we wrote last week, new government scheme revives Hungary’s property market, the prices will go up soon

Also, we wrote about the record number of foreign buyers in the Hungarian real estate market, details HERE.