The positive trend reversal observed in the housing market also signals that Hungary is strengthening. In 2016, the number of building permits issued rose two-and-a-half fold year-on-year, and 10 000 new residential units were completed, up by 31 percent compared to the same period of the previous year.

The Hungarian Central Statistical Office has released the latest housing data earlier today. These show that in 2016 31 559 building permits were issued. The steady rise in the number of building permits issued over the past three years has recently shown also in the soaring number of completed residential units. During the year 2016, 9994 residential units have been completed in the country, up by 2400 compared to 2015. It is an especially encouraging sign that the number of both building permits and completed residential units have increased in each type of settlement during the past year.

As an indicator of a stronger supply side, the share of residential units built for sale increased from the former 39 percent to 50 percent in 2016. On the demand side, the volume of housing loans soared by 29 percent year-on-year.

The Ministry for National Economy expects the number of dwellings to continue to rise in coming quarters. This anticipation is underpinned by the Government’s housing programme and the improvement of employment and household income data driven by the wage deal brokered in November as well as tax cuts.

(Ministry for National Economy)