Évosz: Local Construction Market Could be Halved

Construction

Hungarian construction association Évosz this week said the local home construction and renovation market could be halved if measures aren't taken to address rates for home credit that now stand at more than 10%, according to novekedes.hu.

The association said a 5% interest rate on home loans, the "psychological limit" for Hungarians for such credit, could contribute to keeping home construction and renovation at present levels.

"Without resolving these financing difficulties, and without a closer integration of family policy and housing policy, a drop in home construction and renovation volume by as much as half in the coming two years can't be excluded," Évosz explained.

It noted that home construction and renovation account for about 20% of the sector's output and are especially important for micro businesses and small companies.

It added that the industry has the capacity to build 25,000-30,000 homes and renovate 250,000 a year. Évosz said construction sector output for this year could climb 3-4% to HUF 6.5 trillion.

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