Construction figures drop in Hungary

20
Feb
2024
News - Construction figures drop in Hungary #construction #dwellings #housing #Hungary

by Property Forum | Residential

In 2023, 18,647 new dwellings were built, 9.2% fewer than a year earlier. The number of dwellings to be built under construction permits and simple declarations issued was 21,501, 39% fewer than in 2022, Hungary’s Central Statistical Office reports.


In Budapest, 6,359 dwellings were put to use, 3.8% fewer than a year earlier. The decline was particularly severe in county seats (–29%), while it was milder in the other towns (–2.0%) and villages (–8.5%). The number of new dwellings increased by 7.3% in the Pest region and decreased in the other regions compared to 2022. The rate of decrease was highest in the Southern Great Plain, at 45%.

Outside the central large region, Győr-Moson-Sopron county continued to have the highest number of dwellings built, but even this was down from a year earlier (–6.4%). The share of dwellings built by natural persons decreased from 39% to 36%, while those built by enterprises increased from 60% to 64% compared to 2022.

Of dwellings put to use in new residential buildings, 46% were in detached houses, 45% in multi-family buildings and 7.1% in residents’ parks. This represents an increase of 6 percentage points for multi-family buildings and a decrease of 3 percentage points for detached houses compared to a year earlier. The average floor area of dwellings put into use decreased by 2 m2 to 94 m2 compared to 2022.

Based on building permits and declarations, the construction of 21,501 dwellings was initiated, 39% fewer than in the previous year. Construction sentiment declined most in villages (–43%) and the capital (–41%), with 28% fewer permits issued in county seats and 37% fewer in the other towns.

The number of dwellings to be built decreased in all regions, except Southern Great Plain (–0.1%), which stagnated, compared to the previous year. At the county level, there was also a general decline, with only Bács-Kiskun showing a significant increase (11%) and Hajdú-Bihar stagnating (+0.3%). Builders made use of the simple declaration option in 44% of cases. This rate is 7.0% in Budapest and 89% in villages.

Based on the new building permits issued, 8,732 residential buildings are planned, 37% fewer than in 2022. The planned 6,981 single-family residential buildings represent 80% of all residential buildings to be built. The number of planned non-residential buildings was 4,013, 16% fewer than a year earlier.




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New leases

  • Premium office operator Hotspot has expanded its flexible workspace footprint within Bucharest's The Mark building by approximately 700 sqm to meet rising corporate demand. The expansion brings the total area of private office and coworking spaces at the Hotspot Workhub sites to approximately 2,552 sqm.
  • Stook Concept has leased a 3,600 sqm module within building C2 at the MLP Bucharest West logistics centre. The facility comprises approximately 3,500 sqm of warehouse space and 100 sqm of offices. The building is in its final construction phase, with handover scheduled for later this quarter. Colliers represented the tenant in the transaction.
  • DXC Technology has extended its lease agreement for office space in Warsaw’s Skyliner tower, securing its tenancy until 2032. The global IT services leader will continue to occupy nearly 4,600 sqm of office space distributed across three floors of the Karimpol Group’s flagship development.

New appointments

  • BNP Paribas Real Estate Poland has expanded its Industrial and Logistics Agency team with the appointments of Joanna Choromańska, formerly of JLL, and Bartosz Wilczyński, previously with CBRE. The new hires bring a combined 34 years of experience in sector sales, lease negotiations, and build-to-suit project delivery to support the division's ongoing growth.
  • Speedwell has expanded its industrial and logistics team with the appointment of Valentin Achim as Leasing and Property Manager for Industrial Developments. Achim brings extensive experience in coordinating commercial and operational activities within the logistics and industrial sectors. In his new role, he will oversee the development and expansion of the company's Spaceplus platform.
  • Colliers has appointed Kata Mazsaroff, Tamás Beck, and Miklós Ecsődi as Equity Partners in Hungary, effective 30 April 2026. Mazsaroff, who joined in 2007, rises to Managing Partner after overseeing a 200 per cent revenue increase since her 2022 appointment as Managing Director. Beck, with Colliers since 1994, has led the Industrial & Logistics division since 2005, facilitating transactions covering 1.9 million sqm of built space and 9.8 million sqm of land. Ecsődi, Head of Occupier Services and Office Agency since joining in 2011, has secured over 450,000 sqm in leases valued above €600 million.


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