In the year 2017, 38 thousand building permits have been issued, the highest figure in nine years, Minister for National Economy Mihály Varga was quoted as he was commenting on the latest housing data published by the Hungarian Central Statistical Office (KSH).

After the positive U-turn of 2016, the housing market boom continued in 2017. It has been an especially encouraging sign, the Minister said, that the rising number of building permits issued in recent years has already translated into a higher number of building projects: in 2017, some 15 thousand new dwellings were built in Hungary, up by 44 percent year-on-year. Last year, the largest growth in the number of dwellings put to use was observed in villages and towns, while positive trends were seen all across the country, Mihály Varga noted.

The extension of the Government’s housing scheme and the reduced VAT rate on the sale of new residential properties were the major drivers of this dynamic growth. In the period between the introduction of the Family Housing Allowance (CSOK) in 1 July 2015 and January 2018, banks have received applications of some 68 thousand households in the value of HUF 190bn, the Minister stated. Besides the housing scheme, the positive housing trend has also been fuelled by steady and balanced economic growth, a favourable employment trend, rising real-term wages and low interest rates, he added.

Wage hikes implemented this year in line with the six-year wage agreement, he said, are expected to provide fresh momentum to the demand side and this will cause further housing market expansion, he pointed out.

(Ministry for National Economy)