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It Costs Much More to Build a House in Hungary

Miklós Halász-Szabó 2018.09.13.

Home construction costs rose by almost 8 percent last year, daily Magyar Idők said on Thursday, citing annual data compiled by statistics office KSH.

The data show the average cost of building a family house reached 229,000 forints (EUR 704) per square metre last year. The cost of building a multi-storey block of flats was 237,000 forints per square metre and the cost of building additions onto existing homes was 195,000 forints.

In Budapest, the average cost of building a block of flats stood at 255,000 forints per square metre, while the cost of building a house was 268,000 forints per square metre. The costs exclude VAT.

Lawmakers lowered the VAT rate on home construction to 5 percent from 27 percent in 2016, but the rate is set to revert to the former level, which is Hungary’s main VAT rate, from the beginning of 2020.

via MTI