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New homes in Hungary continue to be strong in the first quarter

The number of residential building permits issued in Hungary increased 15.2% annually to 8,001 in the first quarter. This is the data released by the Central Statistics Office (KSH) on Thursday. Performance..

The number of permits issued to capital housing increased by 174.4 percent to 2,077, and the number of permits issued to county seats and cities with a population of over 50,000 decreased by 27.5 percent to 1,248, small. The number of permits issued in cities decreased by 2.2 percent to 2,579. In the smallest settlement in the country, the number of housing permits issued increased by 14.5 percent to 2,097.

The Hungarian government has reduced the VAT rate for home construction from 27% to 5% from the beginning of 2021 for two years as part of measures to support economic recovery from the coronavirus crisis.

The number of completed homes decreased by 26.4% to 4,528. This shows the impact of the sector’s contraction after the three-year priority housing construction VAT rate cut was completed in 2019.

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Residential building permit issues rise nearly 30% from Q1 to Q3

Residential building permit issues rise nearly 30% from Q1 to Q3

In Budapest, the number of housing permits decreased by 22.9 percent to 4,215.Please continue reading

Detached homes accounted for 32% of completion in the first quarter. Condominiums with multiple dwellings make up 53% of the total, and housing in residential parks make up 13%.

The average size of the new home was just over 81 square meters. The share of housing built by companies was 74%. Data show that 367 homes were destroyed or blamed in 2021.

Dániel Molnár, an analyst at economic researcher Szazadveg, said housing sentiment remains strong, reflecting a number of building permit issues. However, he said that producer prices in the construction sector are rising, housing construction is becoming more expensive, and labor shortages are an ongoing challenge for the sector.

Gergely Suppan, chief analyst at Magyar Bankholding, said nearly 202,000 building permits have been issued since 2016, but only nearly 116,000 homes have been completed, showing a serious backlog of 86,000. rice field. He said housing construction continues to lag behind pre-crisis levels, international interest rates and interest rates needed to renew domestic housing stock.

Featured photo illustration via pixabay



https://hungarytoday.hu/new-home-building-in-hungary-q1-2022/ New homes in Hungary continue to be strong in the first quarter

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