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Housing Construction Boom Has Begun In Hungary, Eurostat Data Show

By Tamás Székely // 2016.10.26.

The number of permissions issued for house constructions has increased the most rapidly in Hungary in the whole European Union, Hungarian property sales portal reported referring to Eurostat data. In the second quarter of this year more than three times more construction permissions were granted in Hungary than a year before.

In Hungary, the increase in the number of house constructions reached 230%, while the EU average is only 11%. On the list Portugal comes second, while in the Central Europe region housing construction boom can be observed also in Austria and Romania. Demand for new houses and apartments rose by 43% in Hungary, while supply rose by 53%. The increasing trend is forecast to continue, according to the report.

Despite the positive numbers, it has not become easier to buy a new home in Hungary, because the prices are also going up. While the average increase in the EU is 4%, in Hungary and in Latvia – the two leaders of the list – prices have risen by more than 10%. Meanwhile prices of houses rose in Austria by 9%, in Czech Republic and Slovakia by 6%. In Poland, increase in home prices rose only by 0,4%.

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