Published on: 4 May 2023

Considerable drop in housing construction and building permits

In the 1st quarter of 2023 a total of 3613 new dwellings have been built, 20% fewer year-on-year. The number of dwellings to be built, based on issued building permits and simple declarations, was 4989, this being 38% less than in the same period of 2022.

The majority (61%) of the 3,613 new homes were built in the countryside. The decrease is significant in Budapest: a total of 1,404 apartments were put into use, 42% less than a year earlier. 0.6% fewer apartments were built in the towns of county rank, and 4.2% fewer in other cities. Housing construction increased in the villages only, 721 apartments were put into use, 29% more than in the last year.

The number of dwellings built by natural persons was 7.0% higher, that of enterprises was 29% lower than a year earlier. Accordingly, the share of enterprises in housing construction decreased from 73% to 65%.

44% of the apartments put into use in new residential buildings are in single-family houses, 46% are in multi-apartment buildings, and another 7% are in residential parks.

The average floor area of dwellings put into use increased by 14 sqm to 95 sqm compared to the 1st quarter of 2022.

The proportion of homes built for sale was 63%, those built for own use was 34%, and those built for rental 2.3%.

Although the number of newly built dwellings slightly increased (by 5.2%) in the Budapest agglomeration, this did not offset the decrease in the capital city, as such, in the Central Hungary region almost one-third fewer dwellings were built than a year earlier. In terms of number and dynamics, there was a significant housing construction in the central and western areas of Transdanubia, as well as in the Northern Great Plain, while in other regions of the country there was a decline, compared even to the previous low base.

At national level, the number of homes to be built was 4,989. The number of permits and simple declarations fell by half in villages and smaller towns. The decrease was 27% in the towns of county rank, 16% in the capital. Builders used the option of simple declaration in 49% of the cases.

Compared to the same period of 2022, based on the new building permits issued, 45% fewer, a total of 2,094 residential buildings and 17% fewer, 956 non-residential buildings are planned to be built in the country.

New dwelling construction permits and simple declarations, dwellings put to use and ceased

Territorial unit New dwelling construction permits issued (declarations) in the first half of the year Number of dwellings put to use in the first half of the year Number of dwellings ceased to exist in the first half of the year
number first quarter of 2023 as a percentage of first quarter of 2022 first quarter of 2022 first quarter of 2023 first quarter of 2023 as a percentage of first quarter of 2022 first quarter of 2022 first quarter of 2023
first quarter of 2022 first quarter of 2023 of which: simple declarations
Budapest2 0771 74311983,92 4401 40457,525135
Towns of county rank1 24890552072,568067699,47680
Other towns2 5791 28783249,984881295,8165154
Villages2 0971 05494950,3560721128,8101120
Total8 0014 9892 42062,44 5283 61379,8367489

Methodological note: in accordance with Government Decree 456/2015. (XII. 29.) statistical data contain construction permits, simple declarations, put to use permits and official certificates concerning the put to use of buildings constructed on the basis of simple declaration.