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May 08, 2018

Hungary's housing market is booming

The number of newly built dwellings increased by 65 percent year-on-year in the first quarter of the year, totaling 3,400 units. The increase also reflects the success of the government’s housing program

New homes built in Hungary this year have increased at a rapid rate, according to official figures.

According to Kormany.hu, the number of newly built dwellings increased by 65 percent year-on-year in the first quarter of the year, totaling 3,400 units. The increase also reflects the success of the government’s housing program.

From January to March of this year, the number of new construction permits and declarations totaled 9,850, up by 3.4 percent compared to the high base of the same period of the previous year. The increase in permits translated into an increase in building projects.

Government sources have said that the housing market boom can be attributed to rising wages and the Government’s Housing Subsidy Programme.

The numbers show that up to March 2018, banks approved 72,000 applications for subsidized loans, in the value of 205 billion HUF (660 million EUR), the equivalent of 0.5 percent of Hungary’s GDP.

The upward trend is expected to continue as government measures are predicted to boost both the demand and supply sides of the housing market.

Sources also predict that wage hikes resulting from the six-year wage agreement will also have a stimulating effect on the demand for residential properties.