The recently presented housing scheme is a major endeavour expected to boost economic growth and achieve long-term social policy goals such as the reversal of a negative demographic trend and keeping skilled labour force in Hungary, Minister of State for Economic Development and Regulation István Lepsényi said at a press conference organized to promote the new programme.
The new housing scheme is a versatile tool for supporting families in building new flats and houses but it is also a tool for generating new investment valued at HUF 200-240bn through the construction of some 10 000 new residential properties. This may add 0.4-0.5 percentage points to the country’s GDP and create 14 000-16 000 new jobs.
Fiscal revenues originating from construction is expected to offset expenditures, while higher birth rates and the improvement of living conditions of young couples will result in long-term advantages that bring in more than the costs of the programme, he added.
Speaking of the reduction of VAT on construction, the Minister of State pointed out that it would set in motion a new construction sector revival, long anticipated by the market.
As he stressed, “It is important for the production capacities of Hungarian construction sector companies to be capable of keeping up with favourable economic processes and therefore the domestic construction material industry must also be well-prepared for the sector’s increasing demand.”
(Ministry for National Economy)
