A Signal of a Housing Rebound in Hungary

Despite a marked drop in newly completed homes in the first half of 2025, the number of building permits issued increased significantly nationwide, indicating a potential rebound in construction activity after a period of slowdown.

According to the Budapest Business Journal, from January to June 5,129 new dwellings were put into use in Hungary, a 15% decline compared with the same period of 2024. The drop affected most of the country: completions in Budapest were down 14%, in cities with county rights down 34%, and in villages down 17%. Only smaller towns without county status posted a slight year-on-year increase of 1.1%.

Budapest remained the epicenter of residential construction — 1,821 homes were completed there.

The share of homes built by private individuals fell from 38% to 33%, while company-led construction rose from 60% to 67%. By building type, 48% of new dwellings were in detached houses, 41% in multi-unit buildings, and 7.1% in residential complexes.

The average floor area of newly built homes edged down by 1.9 sq m to 93.5 sq m compared with the same period a year earlier. In Budapest, the average size was markedly lower at 68 sq m.

Homes built for sale accounted for 66% of all completions, while those built for owner-occupation made up 32%. This represents a 6.7 percentage-point shift toward market-driven construction.

Meanwhile, the number of building permits and simple declarations surged by 43% nationwide to 12,830. The strongest increase was recorded in the capital: permits were issued for 5,992 dwellings, 3.8 times more than a year earlier. In cities with county rights, the number of permits rose moderately by 3.3%. In smaller towns and villages, declines of 17% and 6.1% were recorded, respectively.

In 31% of cases, the “simple declaration” procedure was used, providing contractors with a streamlined administrative path.

Based on the permits issued, 4,451 new residential buildings are planned nationwide — 3.2% more year on year. At the same time, the number of non-residential buildings is expected to fall: 1,396 projects are planned, a decline of 20%.

Source: Budapest Business Journal (bbj.hu)