Published on: 31 July 2023

Decreasing housing construction

In the first half of 2023, 7,353 new dwellings were built, 19% less than a year earlier. The number of homes to be built based on issued dwelling construction permits and simple declarations was 10,880, 39% less than in the same period of 2022.

Compared to the first half of 2022:

In Budapest, 2,316 dwellings were put into use, 36% fewer than in the same period of the previous year. In the county seats, 28% fewer dwellings were built and 6.9% fewer in the other cities. Only the villages saw an increase in housing construction, with 9.2% more dwellings put into use. The majority of construction in villages (66%) took place in agglomerations.

Mainly, the number of dwellings built by enterprises fell (24%), while the number of dwellings built by natural persons fell more moderately (5.3%).

Of the dwellings put into use in new residential buildings, 48% were in detached houses, 45% in multi-family buildings and 4.0% in residential complexes.

The share of owner-occupied dwellings was 37%, and the share built for sale was 60%. In this respect, too, there is a noticeable shift in favour of owner-occupied construction.

The average floor area of dwellings put into use increased by 8.6 m2 to 97 m2.

Only two regions did not see a decrease in the number of new dwellings: in the Pest region, the number of new dwellings was about the same and in the Northern Great Plain 27% higher than in the same period of the previous year.

The number of dwellings to be built on the basis of building permits and simple declarations was 10,880, 39% less than in the first half of 2022. 39% of the new dwellings are planned to be built in the capital. Construction sentiment has declined in all settlement categories, with a steep decline down the settlement hierarchy: 17% fewer dwellings are planned in the capital, 38% in the county seats, 47% fewer in other cities and 53% fewer in villages than in the same period last year.

With the exception of Hajdú-Bihar county, where there was a minimal increase, the number of dwellings planned for construction fell in all areas of the country. At the regional level, the biggest decrease was in Southern Transdanubia (58%), including Baranya county, where the number of permits issued fell to just over a quarter.

The decrease in the number of planned dwellings was 32% in Central Hungary and 29% in the Great Plain and North large region.

Based on the new building permits issued, 47% fewer, a total of 4,238 residential buildings are planned to be built. The number of non-residential buildings planned nationally was 2,081, also down from a year earlier. However, among non-residential buildings, the floor area of industrial buildings increased by 42%.

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 2023 as a percentage of first half of 2022 first half of 2022 first half of 2023 first half of 2023 as a percentage of first half of 2022 first half of 2022 first half of 2023
first half of 2022 first half of 2023 of which: simple declarations
Budapest5,1074,25829283.43,6212,31664.078186
County seats2,7651,71680562.11,5641,12672.016171
Other towns5,1932,7431,74252.82,4932,32293.1339345
Villages4,6502,1631,84946.51,4551,589109.2206223
Total17,71510,8804,68861.49,1337,35380.5784825

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.