The Central Statistical Office noted that in total, some 13,295 new homes were built in 2024, representing a 29% decrease compared to the previous year. The number of dwellings planned based on issued construction permits and simple declarations also dropped by 4.7% year-on-year to 20,494 units.

Sharp Declines Across Major Regions and Cities

Budapest, the capital, recorded 4,067 completed dwellings, down 28% from 2023. The decline was also significant across other settlement categories: new home completions fell by 26% in towns of county rank, 37% in other towns, and 23% in villages.

Half of the newly completed homes in Budapest were concentrated in just two districts—XI and XIII— where 2,300 dwellings were completed. This number exceeded the total of 2,000 homes completed in the entire Budapest agglomeration.

Regionally, all areas except the Southern Great Plain experienced a decrease in completed dwellings. The Southern Great Plain posted a 12% increase, the only positive result nationwide.

South Transdanubia saw the largest drop at 41%, followed by North Hungary and Pest County, which recorded declines of 39% and 37%, respectively.

In Győr-Moson-Sopron, historically a region with high construction activity, 31% fewer homes were completed.

Shift Toward Detached Houses

A growing share of new homes was built by private individuals, increasing from 36% in 2023 to 38%, while the share built by enterprises fell from 64% to 61%.

Detached houses accounted for 50% of all new dwellings, up by nearly four percentage points. Multi-dwelling buildings represented 44% of new homes, a decrease of 0.6 percentage points, while residential complexes accounted for only 3.4%, dropping to less than half of their previous share.

The average floor area of newly completed homes increased by 2.5 square meters to 96.6 square meters compared to 2023.

Construction Outlook Shows Mixed Sentiment

The outlook for future construction also weakened, with 20,494 new dwellings planned under building permits and notifications, down 4.7% from the previous year. The decrease was particularly notable in Hungary’s largest urban areas, where construction sentiment fell by 12% in Budapest and by 5.6% in towns of county rank.

In contrast, other municipalities showed modest growth, with non-county rank towns reporting a 2% increase in housing plans and villages seeing a 1.1% rise.

Western and Southern Transdanubia and the Northern Great Plain were the only regions to record growth in planned construction. The most notable increase was in Tolna County, where the number of planned dwellings rose 4.6-fold, primarily due to housing projects in Paks. Hajdú-Bihar County also showed strong growth, with the number of permits issued increasing by 32%.

Simplified Procedures Gaining Popularity

Builders increasingly took advantage of the simplified declaration procedure, using it in 45% of all cases. However, adoption varied significantly by location, with only 7.7% of projects in Budapest utilizing this option compared to 86% in villages.

Non-Residential Construction Also Declines

Based on new construction permits issued, 8,671 residential buildings are planned, representing a slight decrease of 0.7% compared to 2023. Single-dwelling residential buildings remain the most common, accounting for 79% of planned units, or 6,848 homes.

The number of planned non-residential buildings dropped by 12% year-on-year to 3,530 units, indicating a broader slowdown in the construction sector.

With declines across nearly all metrics, Hungary’s residential construction market shows no signs of a quick turnaround, reflecting cautious sentiment among builders and investors alike.

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