In Q1 2018, the number of newly built dwellings completed increased at an unprecedented rate of 65 percent year-on-year, to a total of some 3 400 units. The increase also reflects the success of the Government’s Housing Programme.

In the first three months of 2018, the number of new construction permits and declarations totalled 9 850, up by 3.4 percent compared to the high base of the same period of the previous year. The upward trend in the number of new construction permits observed in recent years has translated into a higher volume in the construction of homes, too.

The housing market boom is attributable, besides steadily rising wages, to the successful reception of the Government’s Housing Subsidy Programme. Up to March 2018, banks have approved the application of 72 000 families for subsidized loans, in the value of HUF 205bn (EUR 660 million), the equivalent of 0.5 percent of Hungary’s GDP.

The existing favourable trends are expected to gain further momentum in coming quarters as Government measures are predicted to boost both the demand and supply sides of the housing market. Wage hikes resulting from the six-year wage agreement will also have a stimulating effect on the demand for residential properties.

(Ministry for National Economy)