The Hungarian government discussed a plan to encourage residential constructions, and it may be a much more complex package they are considering than what experts previously thought.
Professional organizations support a decreasing of VAT of residential constructions from 27 to 5 percent. The Society for House Construction and Reconstruction (TLE) previously stated that it would be necessary to create a long term program and use as much funding from the European Union as possible for the energy-efficient reconstruction of homes and building of rental apartments.
The National Alliance of Construction Entrepreneurs (ÉVOSz) stated that it would be necessary to make more loans with low base rate available. This however may not be a part of the program as the European Commission has some complains about the government's plan about the agreement which would make more active lending by banks possible.
The number of newly built homes introduced to the market decreased according to the numbers of the Hungarian Central Statistical Office. In all sales and purchases they currently only represent a portion of 6-7 percent. Experts speculate that this number could even double if the VAT is decreased to 5%, while prices per m2 will most likely decline in the meantime. Rapid restructuration of the market is not expected, as even those projects which have engineering and financing plans ready will require at least one-one and a half years to be finished.
(Source: http://www.vg.hu/vallalatok/ingatlan/celegyenesben-azafacsokkentes-terve-461161)
