detailed search
- sqm
simple search
September 16th, 2019

Construction Industry: Production in the EU is Growing the Most in Hungary

Construction performance in Hungary increased by more than 35 percent compared to the same period last year. Therefore, it can be said that the sector performs better in Hungary than in Western Europe. The European Union as a whole declined in construction numbers in June and stagnated in the euro area on a monthly basis.

Construction production in Hungary is constantly increasing, said László Szarka, president of the Hungarian Association of Building Materials and Construction Products, on Kossuth Radio's Question of the Day. In June, construction of buildings increased by 23.5 percent and that of other structures by 16.5 percent. The construction of industrial and warehouse buildings, and of other structures, the construction of roads, railways, and utilities has resulted in growth in buildings. In June, the annual growth rate was 20.3 percent in the construction of buildings, 15.6 percent in the construction of other civil engineering works and 23.5 percent in specialized construction.

László Szarka also said that the construction industry in Hungary has just begun to recover from the crisis and is now beginning to stand firm.

For the construction industry as a whole, it accounts for a percentage of government institutional investment, followed by 20 percent for industrial investment in the private sector. The rest consists of new housing and renovations.

Further growth is expected

Growth will continue in the next six months, according to the specialist. However, some manufacturers expect a downturn next year, which will also be affected by the 5 percent house tax being phased out and will determine what will be replaced. Rural CSOK (Family Housing Allowance) is also an important factor, but it can only be considered later. He also noted that in some areas wages had risen by up to 65 percent.

The volume of commissioning also increased significantly, and last year the market exceeded the total value of three thousand billion forints in civil engineering, he added.

There is a great need for home renovations

There is a huge demand for home improvement, which is reflected in mechanical engineering. This is determined by a strict legal environment, for example, where professionals place much more emphasis on environmental and energy challenges. In his opinion, this is worth paying attention to since there is a big difference between used and newly built real estate today.

In the European Union

According to Eurostat's non-final data, construction output stagnated in June in 19 Member States of the euro area, and a 0.3 percent drop in construction output in 28 Member States of the European Union, compared to the previous month. Compared to the same period of the previous year, output in the euro area increased by 1.0 percent and in the EU as a whole by 0.6 percent.

In June, the largest decreases were reported in Slovenia (-6.7 percent), Romania (-2.8 percent) and Portugal (-1.4 percent). The strongest growth was recorded in Hungary (1.7 percent), France and the Czech Republic were also in the lead.

Compared to June of the previous year, Romania (+23.3 percent), Hungary (+20.2 percent) and Slovenia (+5.5 percent) posted the highest increases. Decreases were recorded in Slovakia (-2.1 percent), Great Britain (-2 percent), Sweden (-0.9 percent) and Belgium (-0.3 percent).

Data are incomplete as 12 countries have not yet been surveyed.





Interested in buying a property in Budapest?

Interested in buying a property in Budapest?

Contact us to get a tailor made investment advice from the Budapest market specialist.


Send Enquiry

Market News

We keep you posted on property prices in Budapest and real estate market trends in Hungary

How Real Estate Investors Can Enter Hungary Now?

Good news: you can still get entry to Hungary if you are planning a business travel from the EU, the European Economic Area and many more countries. You only need documents that verify the purpose of your travel.  ...

Increasing Number of Foreign Property Buyers in Budapest

3753 properties were sold to international buyers in 2019 which is 6% growth compared to the year before.   According to the recently published data on (official site of the Hungarian Government) the...

Housing and Rental Prices Change in Hungary and Europe

According to Eurostat’s analysis, the real estate market in Hungary is slowing down, which is good news for investors, buyers and tenants alike. In half a year, Hungary slipped from the first to the tenth place...

InterNations: Budapest Among the Top 20 Cities

InterNations has compiled a list of the 2019 worst and best cities for expats called Expat Insider. Budapest finished in the top 10 in the local cost of living category, but also achieved remarkable results in other...

The Largest Stadium in Hungary was Opened in Budapest

A new national stadium opened in Budapest after 66 years. The match, which started at seven o'clock in the evening, opened the largest and most modern facility in Central Europe. Hungary and Uruguay were playing on the...

Developing Budapest - The Latest Developments of the Liget Project have been Released

The latest developments of the Liget Budapest Project have been completed. The Playground and Millennium House has opened their doors to visitors. The Városliget (City Park) is one of the first public parks in...

Subscribe to our mailing list

Tower Investment
Contact Us Now on Phone or via Form

H-1053 Budapest, Egyetem tér 5.
Tel.: +36 1 808 9777

© 2019 Tower Investments | All rights reserved
Prices of apartments are indicative only. Pricing and availability should be confirmed with Tower International.


Searching for the Best Property Service?

Contact us today and let us guide you in the Budapest real estate market!

  • Trusted by 4000+ clients
  • More than 15 years of experience
  • Leading Property Experts for Foreigners

“I’ve managed to restaure and sell a flat in Budapest. Tower was the most professional and I was happy of my choice.”
- Maximilien

“They have very dedicated, thoughtful and professional staff”
- Hoáng

Excellent personal service, efficient and friendly. Highly recommended for buying real estate.”
- Ian