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.




New leases

  • UDH, one of Poland’s largest distributors of premium imported beers, has leased approximately 1,400 sq m of modern warehouse and office space at the Park Rysy Kraków distribution centre. The tenant, which has chosen to expand its operations in southern Poland, was once again represented by AXI IMMO.
  • Golden Star Estate has secured a long-term lease agreement with global technology solutions and consulting provider C&F for nearly 1,900 sqm of office space at the Konstruktorska Business Center. Following the transaction, the property, located in Warsaw’s Mokotów business district, is now almost fully leased. The Polish branch of C&F will officially relocate to the facility at the beginning of 2027.
  • Natland Group has committed to its long-term presence at Prague-based Rohan Business Center through a lease extension covering 2,004 sqm of office space, together with storage facilities and dedicated parking spaces, in a deal brokered by iO Partners.

New appointments

  • Indotek Group has announced the appointment of Diederik Bakker as Group Chief Investment Officer and Group Head of Asset Management. In his new role, the Dutch real estate investment professional will gradually assume responsibility for the company's ITAM (investment, transaction, and asset management) activities across 12 European countries, supporting the next phase of Indotek Group’s growth. His focus includes facilitating sound investment decisions across Europe and developing a group-level portfolio management strategy that combines local market knowledge with international asset management know-how.
  • Peakside Capital Advisors has appointed Bogi Gabrovic to advise the board and support its investment and acquisition activities in Poland. Gabrovic brings more than 25 years of CEE real estate experience to the role, having previously held senior executive positions at CTP, Golub & Company, and White Star Real Estate, where she managed transactions exceeding €2 billion.
  • Katarína Brydone, Jana Vlková and Vendula Maršová have been appointed as the first Equity Partners of Colliers’ Czech business. Brydone brings more than 20 years of experience in international real estate. Vlková has more than 25 years of experience in commercial real estate. Maršová, Partner and Head of Valuation and Advisory Services, brings more than 16 years of experience in real estate valuation and advisory.

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