The number of construction permits issued in the first 9 months of the year increased significantly, however the number of newly built flats declined greatly.
In all of Hungary 24% more permits were issued, with an even greater increase in Budapest, where authorities issued 73% more permits. Newly built flats introduced to the market however did not experience a similar growth in numbers – in fact there was a 21 percent decline from January to October.
Data published by the Hungarian Central Statistical Office suggests that in the first two quarters of 2015 4657 new apartments were built – 9.5% less than a year earlier. Meanwhile the number of construction permits issued reached 8616, which is 24% higher year-on-year. In this period the number of newly built flats decreased 9.5 percent nationally and 21 percent in the Hungarian capital. There was however a slight increase in larger cities: urban counties experienced a 15% growth in this category.
The share of apartments built by natural persons decreased from 61 to 58 percent, while companies increased their share to 41 percent. In the capital the dominance of companies in constructions is clear as their share reached 70 percent.
54 percent of newly built apartments were constructed for use by their constructors, while 43 were built to be sold on the market. The share of family houses in the segment decreased slightly (from 58 to 56%) along with multi-apartment buildings (from 38 to 34%), while the proportion of newly built flats in residential parks increase from 2 to 7%.
It is a great problem of the Hungarian market that very few newly built flats are introduced each year: the demand is great and prices are booming, there would be a great need for them, but since the financial crisis the constructions industry it seems were not able to gather strengths, and also investors are still careful with larger projects.
(Source: http://www.portfolio.hu/ingatlan/lakas/brutalisan_keves_lakas_epult_2.4.221978.html)
