The Hungarian construction industry experienced a mixed performance in 2024, with the final quarter showing a significant increase in the value of started projects, largely due to the Mohács Danube Bridge project.
The EBI Construction Activity Report, prepared by Eltinga, Buildecon, and iBuild, revealed that the total value of construction projects started in Q4 2024 exceeded HUF 830 billion, an exceptionally high figure. This brought the total value of construction starts for the entire year to approximately HUF 2,800 billion, almost equaling the 2023 level but significantly lagging behind the figures for 2021 and 2022.
The building construction sector saw projects worth a total of around HUF 500 billion launched in Q4 2024, with multi-unit residential projects driving the growth. However, the non-residential segment remained weak, with activity-start at its lowest level in the past 11 years.
Major building construction projects started in 2024 included several phases of Kincsem by Bayer, Park West, and City Pearl, as well as industrial and logistics buildings for companies such as Waberer's, Phoenix Pharma, and Hankook.
Civil engineering records growth in 2024
Civil engineering works worth over HUF 330 billion commenced in Q4 2024, primarily driven by the Mohács Danube Bridge project. The total value of civil engineering activity-start for the year exceeded HUF 800 billion, surpassing the 2023 figure and approaching the 2021 value.
Central Hungary leads on new construction
Central Hungary, particularly Budapest, accounted for the majority of construction starts in 2024. However, the Mohács Danube Bridge project significantly boosted the share of Southern Transdanubia.
Surge in multi-unit housing construction
Multi-unit housing construction experienced a surge in activity in Q4 2024, with the value of started works nearly doubling the previous record. This resulted in a record year for the segment, with total construction starts surpassing HUF 600 billion.
The acceleration in multi-unit housing construction is attributed to a pick-up in demand and anticipation of further increases in 2025, driven by government subsidies and other factors.
Office construction sees new high for deliveries
Office construction experienced a sharp decline in H2 2024, with the total value of activity-start for the year falling to its lowest level since 2015. This decline is attributed to a decrease in market-based projects, with state-funded projects driving much of the activity in recent years.
Despite the challenges faced by the office construction sector, 2024 saw a record level of office completions, nearing HUF 300 billion. This trend is expected to continue in 2025, with several major office projects slated for completion.
