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Slump in housing construction and construction permits

In 2023, 18,647 new dwellings were built, 9.2% fewer than a year earlier. The number of dwellings to be built under construction permits and simple declarations issued was 21,501, 39% fewer than in 2022.

In quarters 1-4 2023 in Budapest, 6,359 dwellings were put to use, 3.8% fewer than a year earlier. The decline was particularly severe in county seats (–29%), while it was milder in the other towns (–2.0%) and villages (–8.5%).

The number of new dwellings increased by 7.3% in the Pest region and decreased in the other regions compared to 2022. The rate of decrease was highest in Southern Great Plain, at 45%.

Outside the central large region, Győr-Moson-Sopron county continued to have the highest number of dwellings built, but even this was down from a year earlier (–6.4%).

The share of dwellings built by natural persons decreased from 39% to 36%, while those built by enterprises increased from 60% to 64% compared to 2022.

Of dwellings put to use in new residential buildings, 46% were in detached houses, 45% in multi-family buildings and 7.1% in residents’ parks. This represents an increase of 6 percentage points for multi-family buildings and a decrease of 3 percentage points for detached houses compared to a year earlier.

The average floor area of dwellings put into use decreased by 2 m2 to 94 m2 compared to 2022.

Based on building permits and declarations, the construction of 21,501 dwellings was initiated, 39% fewer than in the previous year. Construction sentiment declined most in villages (–43%) and the capital (–41%), with 28% fewer permits issued in county seats and 37% fewer in the other towns.

The number of dwellings to be built decreased in all regions, except Southern Great Plain (–0.1%), which stagnated, compared to the previous year. At county level, there was also a general decline, with only Bács-Kiskun showing a significant increase (11%) and Hajdú-Bihar stagnating (+0.3%).

Builders made use of the simple declaration option in 44% of cases. This rate is 7.0% in Budapest and 89% in villages.

Based on the new building permits issued, a total of 8,732 residential buildings are planned, 37% fewer than in 2022. The planned 6,981 single-family residential buildings represent 80% of all residential buildings to be built.

The number of planned non-residential buildings was 4,013, 16% fewer than a year earlier.

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