ÉVOSZ puts construction industry growth at 5-6% in 2022
Photo by JU.STOCKER / Shutterstock.com
Hungary's construction sector is expected to expand 5-6% this year, industry association ÉVOSZ said on Monday, based on outlooks and order stock, according to a report by state news wire MTI.
Industry insiders see home construction and renovation as well as building investments in the industrial and logistics sectors driving growth. The civil engineering segment is not expected to expand as state and municipal council investments wind down ahead of general elections in the spring, albeit freeing up capacity for private sector projects.
ÉVOSZ said supply and demand could "come close to balancing out" by the end of 2022.
At present, around 35,000 homes are under construction, of which close to 25,000 could be completed in 2022. Around 250,000 homes could be renovated during the year.
ÉVOSZ acknowledged the positive impact of the National Bank of Hungary's Green Home Programme which provides 0pc refinancing for lenders for retail loans for high-energy efficiency homes.
The association said the pandemic could cause delays and dearer prices, while the shortage of skilled labor and rising building materials prices remain challenges. It added that building material prices could increase 10-15% in the first quarter alone
Construction sector output rose 11.2% year-on-year in January-November, the latest data released by the Central Statistical Office (KSH) show.
The output of the sector contracted 9.7% in 2020, after climbing 20.4% in 2019.
Hungary Gasoline Prices 3% Over Regional Avg
Hungary to Address Future of Cohesion Policy During EU Presi...
Cordia’s Marina City Project Begins
Budapest Airport Wins 'Best Airport in Eastern Europe' for 1...
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
