Decline in construction permits in the capital mitigated by rural growth
In the first three quarters of 2024, 8,709 new dwellings were built, 19% fewer than a year earlier. The number of dwellings to be built on the basis of issued construction permits and simple declarations was 14 551, 2.3% lower than in the first three quarters of 2023.
In Q1-3 2024, 8,709 dwellings were taken into use, 19% fewer than in the same period of the previous year. In Budapest, the total number of dwellings built was 15% lower, at 2,761. The decrease was also 15% in the towns of county rank, 30% in the other towns and 16% in the villages compared to the first nine months of 2023.
Housing construction in the Pest region was 29% down on the same period last year. Most regions also saw a decline in housing construction, with only the Southern Great Plain region showing a significant increase, with 16% more dwellings built than in the same period in 2023.
In Budapest, the 11th district has the highest number of housing units handed over, with around 1,200. Among the rural towns, Kecskemét stood out with more than 300 dwellings built.
The share of dwellings built by natural persons rose from 39% to 40%, while that built by enterprises fell from 61% to 58% in a year.
53% of dwellings put into use in new residential buildings are in detached houses, 42% in multi-storey, multi-dwelling buildings and 2.1% in residential complexes.
The average floor area of dwellings taken into use increased by 1 m2 to 99 m2 compared to the first three quarters of 2023.
The share of dwellings built for sale was 57% and for own use 40%, a slight shift in favour of self build from the previous 60-38% split. Still only a few dwellings were built for rent (2.3%).
At the national level, the number of dwellings to be built on the basis of construction permits and simple declarations was 14,551, 2.3% lower than a year earlier. While the number of dwellings permitted in single-dwelling buildings increased by 14%, 18% fewer dwellings were initiated to be built in three- and more-dwelling buildings.
Compared to the same period in 2023, the number of housing construction permits issued decreased in the Southern Great Plain (-14%) and in Central Transdanubia (-12%), outside Budapest. The largest increases were recorded in Southern Transdanubia (52%) and Northern Great Plain (51%). In these two regions, the role of housing developments related to investments in Paks and Debrecen is dominant.
In Budapest, 3,391 housing starts were approved, a 34% decrease compared to the same period last year. In the majority of districts, the number of dwellings authorised did not even reach 100, but an outstanding number, nearly 1,400 dwellings were initiated to be built in the 10th district.
The number of dwellings to be built increased by 7.1% in the towns of county rank, by 15% in the other towns and by 20% in the villages compared to Q1-Q3 2023. The number of housing starts was particularly high in Debrecen (936), Paks (380) and Győr (332).
Builders made use of the simple declaration option in 54% of cases.
Based on the new building permits issued, a total of 7,173 residential buildings were permitted to be built in the country, 14% more than in Q1-Q3 2023. The number of non-residential buildings to be built was 2,659.
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 | quarters 1-3 2024 as a percentage of quarters 1-3 2023 | quarters 1-3 2023 | quarters 1-3 2024 | quarters 1-3 2024 as a percentage of quarters 1-3 2023 | quarters 1-3 2023 | quarters 1-3 2024 | |||
| quarters 1-3 2023 | quarters 1-3 2024 | ||||||||
| total | of which: simple declarations | ||||||||
| Budapest | 5 101 | 3 391 | 437 | 66.5 | 3 234 | 2 761 | 85.4 | 216 | 83 |
| Towns of county rank | 2 893 | 3 099 | 1 446 | 107.1 | 1 988 | 1 696 | 85.3 | 186 | 262 |
| Other towns | 3 788 | 4 339 | 2 715 | 114.5 | 3 158 | 2 223 | 70.4 | 425 | 415 |
| Villages | 3 112 | 3 722 | 3 237 | 119.6 | 2 428 | 2 029 | 83.6 | 343 | 303 |
| Total | 14 894 | 14 551 | 7 835 | 97.7 | 10 808 | 8 709 | 80.6 | 1 170 | 1 063 |