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Construction Sector To Count On Governmental Support

By Tamás Székely // 2015.01.06.

The state needs to provide incentives for new home building and home-renovations, which would give a lift to the construction materials industry, the president of the construction-sector association MEASZ said. Győző Vidor said the state must give the first boost to the sector of materials, adding that MEASZ has prepared a proposal for a home builders’ scheme. Applicants would be offered a loan at a fixed 2.5% interest rate, a grant from the state, as well as a partial VAT refund on invoices of purchases. Another state-run programme could increase the rate of home renovations, Vidor added.

Despite an expected 15% rise in the construction industry in 2014, the construction materials market will only see single-digit growth, he said. This is due to the fact that infrastructure investments, which drive the construction sector, use only few materials manufactured in this segment. The largest growth was in window and door sales, nearly 10% last year, partly generated by imports. A lack of skilled labour could soon be a problem, too, with several regions in Hungary already lacking qualified repairmen for window fitting or instalment of insulation.

Previously Tibor Tolnay, head of the Hungarian Construction Industry Association (ÉVOSZ) said that building construction segment would not be able to grow until investors place orders for new offices and industrial facilities. He also noted that next year’s outlook is rather uncertain due to the absence of private investors from the building construction segment. Meanwhile opposition JOBBIK party urges the government to launch a new home rental scheme to help young families and to boost the recovery of the construction sector.

via hungarymatters.hu photo: veol.hu