Continuing slump in housing construction
In the first half of 2024, 6,027 new dwellings were built, 18% fewer than a year earlier. The number of dwellings to be built on the basis of issued construction permits and simple declarations was 8,972, also 18% lower than in the same period of 2023.
In the first half of 2024, 6,027 dwellings were taken into use, 18% fewer than in the same period of the previous year. In the capital city, the total number of dwellings built was down by 8.3%, to 2,124. The number of dwellings handed over decreased by 20% in the towns of county rank, by 27% in other towns and by 19% in villages compared to the first half of 2023.
Housing construction in Budapest continues to be characterised by a strong spatial concentration, with 46% of new dwellings, or nearly 1,000 dwellings, delivered in District XI.
The number of housing completions in the Pest region was 20% lower than in the same period of the previous year. The other regions also recorded a decline, with the exception of Southern Great Plain, where the number of housing constructions increased by 15%. This was mainly due to the significant recovery observed in Kecskemét, among the rural towns the largest number of dwellings (265) was built here in the first half of the year.
The share of dwellings built by natural persons was the same as a year earlier at 38%, while that built by enterprises fell from 62% to 60%.
50% of dwellings taken into use in new residential buildings are in detached houses, 47% in multi-storey, multi-dwelling buildings and only 0.8% in residential complexes.
The average floor area of dwellings taken into use decreased by 1.6 m2 to 95.4 m2 compared to the first half of 2023.
The share of dwellings built for sale was 59%, while those built for owner-occupation stood at 38%, showing only a slight change compared to the distribution a year earlier (60-37%). Housing construction for rent remains rare, but its share (2.7%) is up on the previous year.
At the national level, the number of dwellings to be built on the basis of construction permits and simple declarations was 8,972, 18% fewer than a year earlier. While the number of dwellings permitted in one- to two-apartment buildings increased by around 5%, those permitted in multi-apartment buildings fell by 34%.
The decline in the number of dwellings planned in multi-apartment buildings was particularly pronounced in Budapest (70%), resulting in a significant 63% drop in the number of construction permits issued in the capital in the first half of the year.
The number of housing construction permits decreased slightly (0.7%) in villages, while it increased by 17% in towns of county rank and by 18% in other towns.
Builders made use of the simple declaration option in 52% of cases.
Based on the new permits issued, the construction of 4,311 residential buildings is planned in the country, 1.7% more than in the first half of 2023. The number of non-residential buildings to be built decreased by 17% and their total floor area by 44%.
New dwelling construction permits and simple declarations, dwellings put to use and ceased
| Territorial unit | New dwelling construction permits issued (declarations) | Number of dwellings put to use | Number of dwellings ceased to exist | ||||||
|---|---|---|---|---|---|---|---|---|---|
| number | first half of 2024 as a percentage of first half of 2023 | first half of 2023 | first half of 2024 | first half of 2024 as a percentage of first half of 2023 | first half of 2023 | first half of 2024 | |||
| first half of 2023 | first half of 2024 | ||||||||
| total | of which: simple declarations | ||||||||
| Budapest | 4 258 | 1 571 | 248 | 36.9 | 2 316 | 2 124 | 91.7 | 186 | 51 |
| Towns of county rank | 1 995 | 2 335 | 825 | 117.0 | 1 398 | 1 121 | 80.2 | 130 | 228 |
| Other towns | 2 464 | 2 919 | 1 692 | 118.5 | 2 050 | 1 487 | 72.5 | 286 | 271 |
| Villages | 2 163 | 2 147 | 1 907 | 99.3 | 1 589 | 1 295 | 81.5 | 223 | 191 |
| Total | 10 880 | 8 972 | 4 672 | 82.5 | 7 353 | 6 027 | 82.0 | 825 | 741 |