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Analysts: construction may expand by 22 percent this year


Analysts: construction may expand by 22 percent this year

MTI Image: OPH

November 12, 2018

Construction can grow 22 percent year after year and, next year, according to current prospects, an additional 15 percent growth will be achieved, market analysts commented on the CSO report on the construction performance of Monday in September.

According to the Central Statistics Office (HCSO), construction output was 25.8 percent higher than in the previous year, almost identical to the revised figure of 25.7 percent from the previous year.

Koji László, president of the National Association of Construction Contractors (ÉVOSZ), told MTI that construction reached its highest performance (375,300 million forints) in September this year, while the sector continues to grow at monthly prices to do more. For this reason, the association altered the prognosis this year so that, instead of the expected increase of 18 percent in production

They represent an increase of 20-22 percent in construction, which can exceed HUF 3000 million in value.

ÉVOSZ believes that the impetus of the construction industry will remain until 2020, so that until 2019 two-digit growth is expected in production.

Source: OPH

Koji László also reported that construction work orders are very high, according to the HCSO, the contract value of construction companies at the end of September was 42.5 percent more than the previous year-80 percent of companies of construction are almost tied at the end of next year.

The president of the federation association, in connection with the extension of the rate of 5 percent VAT on the purchase of a new home, said that the government had stopped offering such incentives until December 31, 2019 but for the year 2023, but abolished the pressure of time on construction companies, as this decline affects 20,000 homes, which are already under construction but will not be completed by the end of next year.

He stressed the fast-paced investment driven by market demand, so the biggest challenge facing more growth in the sector is the acquisition of tools and equipment to improve efficiency, technological investments and the establishment of stable outsourcing systems.


Andrew Horváth, the Takarékbank analyst, commented on a comment to MTI that, as a result of the September data, in 2018, the annual growth of 22 percent is construction, while in 2019 the growth rate of the sector may exceed 15 per cent.

Building with an average growth of 29.2 percent in the third quarter, construction continued to contribute significantly to GDP growth in the period from July to September, he added.

He also reported that, according to data from the Round Table of Real Estate Development (CIF) that encompasses a significant proportion of the construction industry

More than 1.5 million square meters of real estate are under construction, the value of the investments exceeds 680 million forints.

This is an absolute record, with this volume Hungary can receive the title of the largest real estate development market in the region. According to the developing properties, 41 percent have offices, 34 percent are apartments, 16 percent are commercial, 8 percent are logistics, 1 percent is the development of the hotel.

He also said that in the construction industry expected a large increase in wages and sales in the coming years, according to labor shortages and efficiency gains, according to the analyst, according to the analyst, said the trend has already begun is that by hand Qualified work gradually returns to the Hungarian economy and mitigates the limitation of capacity in construction.

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