Optimism in the Budapest Housing Market


In the first half of this year, 6,472 new properties were built, 0.7 percent less than a year earlier, according to the latest KSH (Central Statistics Office) analysis. The number of building permits issued indicates that the number of flats to be built was 18,227. This is 0.9 percent more than in the same period in 2018.

In the first half of 2019, the number of apartments under construction decreased. In Budapest, 8.6 percent, while in smaller towns 7.8 percent less were built. In county towns 10 percent, and in villages 4.3 percent more properties were available to use. In Pest County, the number of residential construction projects decreased by 5.9 percent, even though it is still above the national average. Compared to the Alföld (Great Hungarian Plain) and Northern Hungary, Győr-Moson-Sopron County stands out as the number of apartments under construction increased by 10 percent.

  • The proportion of business-built flats increased from 49 to 52, while that of natural persons decreased from 49 to 47.
  • In new residential buildings, 40 percent of the used flats are in multi-storey condominium buildings, 51 percent in single-family houses and 4.2 percent in gated communities.
  • 45 percent of homes were built for own use, 53 percent were for sale and 2.1 percent for rent.
  • The average floor space of the occupied apartments decreased by 2 square meters to 99 square meters.
  • The number of homes to be built on applications and permits increased by 0.9 percent nationwide to 18,227. In Budapest, the change is barely noticeable, in cities with county rights it decreased by 3.2 percent and in other cities by 5.7 percent and increased by 20 percent in villages. In 47 percent of the cases, the builders made use of the simple employment. This is 7.5 percent in Budapest and 92 percent in the villages.
  • According to the announcements, 11 percent more residential buildings are planned to construct than last year, which is 7,486. The number of permits issued for non-residential buildings was 2,007, which is 1.3 percent less than a year ago.

Compared to the previous quarter, both seasonally adjusted data and permits shows a decrease. While this may seem surprising given the ever-increasing numbers of construction numbers, the number of building permits stagnates at a relatively high level. However, regulatory changes are not a cause for concern as this indicates that new projects are still on the market. The decline in the number of delivered homes is expected to be temporary, and increase can be forseen from 2020.




Subscribe to Our Budapest Property Market Newsletter