Number of new homes up 1.5 times in Budapest in first quarter

Portfolio
In the first quarter of 2019, 3,661 new dwellings were built in Hungary, 7.9% more than a year earlier. The number of homes to be built based on issued dwelling construction permits and simple declarations was 9,639, 2.1% less than in the same period of 2018, the Central Statistical Office (KSH) reported on Monday.
The number of dwellings built increased one-and-a-half-fold in Budapest in the first quarter of 2019. Dwelling construction in Pest county continued to stand out but did not increase compared to the previous year. 54% of new dwellings were put to use in Budapest and Pest county. In spite of an 11% decrease the number of new dwellings in Győr-Moson-Sopron county was several times higher than in the other counties. In the first quarter of 2019 one in five new homes were built in Győr-Moson-Sopron county.

' title='


Our seasonally-adjusted data show that the trends of last year continued in 2019. The number of dwellings built has been rising as expected, and in view of the jump of building permits issued in the previous quarters, this trend could last for a longer period. As for building permits, though, we have not seen further increase for a long time now. The number of building permits reached a post-crisis peak in 2017, but the trend has been showing stagnation ever since.
  • The proportion of dwellings built by individuals went down from 50% to 45%, while that of dwellings built by enterprises rose from 50% to 54%.
  • 49% of dwellings put to use in new residential buildings were in detached houses, 44% in multi-storey multi-dwelling buildings and 2.4% in resident’s parks.
  • 56% of homes were built for sale, 42% for own use and 2% for rent.
  • The average floor area of homes put to use decreased by 3.7 square metres to 96 sqm.
  • The national number of dwellings to be built based on construction permits and declarations decreased by 2.1% to 9,639, while it rose nearly one-and-a-half-fold in villages. Builders used simple declarations in 43% of cases. This share was 5.7% in Budapest and was higher and higher when moving towards lower-level territorial units, reaching 90% in villages.
  • Based on issued new construction permits (declarations) 22% more, a total of 3,615 residential buildings are planned to be built, while the number of permits issued for non-residential buildings was 982, which was of the same order as a year earlier.


The decline in the average floor area of homes have parallels to the rise in the ratio of homes build by businesses, as - mostly in Budapest and large county centres - the floor area of such homes are generally smaller than the homes built by private individuals. This keeps reducing the average floor area. It is also important that besides homes built to sell and built for own use, 2% of the homes are built to rent, which indicates that larger investors also started to see potential in the housing market, and renting houses - either for short or for long terms - is becoming an increasingly accepted practice.

More in Property

építőipar építkezés
November 19, 2021 11:50

Property market segment 'buried' last year shows miraculous recovery

New office guilding projects mushroom at record rate

Budapest cityscape with Zrinyi Street and St Stephen's Basilica at dusk
November 18, 2021 10:42

Home prices continue to increase in Hungary, central bank report shows

Price gap between Budapest and county seats decreases in Q2

lakásépítés
November 18, 2021 09:00

We can hardly wait for multi-unit housing projects to mushroom

Developments are yet to take off

építőipar építkezés
November 16, 2021 09:00

Where have constructions picked up and waned in Hungary?

Here is a regional breakdown

építkezés daru
November 15, 2021 17:00

One of the main engines of the Hungarian economy freezing up? - Daunting figures land

Construction starts in Q3 turn out to be feeble