New residential construction in Hungary hits 11-year high

25
Feb
2021
News - New residential construction in Hungary hits 11-year high #Hungary #KSH #report #residential

by Property Forum | Residential

In 2020, 28,208 new dwellings were built in Hungary, 34% more than a year earlier, the Central Statistical Office (KSH) said. The annual figure is an 11-year high. Meanwhile, based on issued dwelling construction permits and simple declarations, the number of homes to be built decreased by 36% compared to 2019 to 22,556.

In 2020, 6,341 homes were built in Budapest, 8.6% more than in 2019. District 11 accounted for a third of Budapest housing construction and nearly a tenth of Hungary’s total housing construction.

The number of dwellings put to use increased in every settlement category.  The number of new dwellings increased by 55% in towns of county rank, by 31% in other towns, and by 45% in villages. Almost half of the strong growth in towns of county rank was provided by three settlements: Debrecen, Győr, and Szeged, with more than 1,000 new dwellings put to use in each.

Compared to 2019, the number of new dwellings more than doubled in the Northern Great Plain region, and grew strongly both in Southern Transdanubia (81%) and the Southern Great Plain (70%). Only two regions experienced decrease: Central Transdanubia and Northern Hungary, both down by 13%.

 

The proportion of dwellings built by individuals increased from 41% to 47%, while that of dwellings built by enterprises fell from 57% to 52% compared to 2019.

52% of dwellings put to use in new residential buildings were in detached houses, 39% in multi-dwelling buildings and 5.9% in residential parks. Floor area averaged 98 sqm in homes put to use, up 1.4 sqm on 2019.

In 2020, the number of dwelling construction permits and declarations was remarkably lower than the number of dwellings put to use. The number of building permits was several times higher than that of new homes, a significant turnaround from previous years.

Housing construction sentiment decreased in all settlement categories. Moving towards smaller settlements, the decrease was smaller and smaller: in Budapest, the number of construction permits and declarations decreased by 48%, in county towns by 39%, in other cities by 32%, and in villages by 14%.

A total of 11,381 residential buildings are planned to be built, down 20%, issued new building permits show. 81% of them, a total of 9,265 units, are one-dwelling residential buildings.

4,023 permits were issued for non-residential buildings, down 3.4% on 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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