Construction in Hungary – Key Trends and Opportunities to 2021
Construction activity in Hungary was weak during 2016, owing to the effects of the economic recession. This had an adverse impact on business confidence, which in turn reduced the pace of investment in construction projects.
The industry is expected to expand over the forecast period (2017–2021), supported by a gradual improvement in regional economic conditions, coupled with a resurgence in both investor and consumer confidence. This is expected to add momentum to the flow of investments into construction projects.
The industry’s expansion is expected to be supported by public sector investments in transport infrastructure projects as the government aims to revamp economic growth. Additionally, positive developments in the tourism and retail sectors and the expansion of the manufacturing sector are also expected to contribute to the industry’s expansion over the forecast period.
The industry’s output value in real terms recorded a compound annual growth rate (CAGR) of 0.07% during the review period (2012–2016) and is expected to post a CAGR of 6.25% over the forecast period.
Timetric’s Construction in Hungary – Key Trends and Opportunities to 2021 report provides detailed market analysis, information and insights into the Hungarian construction industry, including:
The Hungarian construction industry's growth prospects by market, project type and construction activity
Analysis of equipment, material and service costs for each project type in Hungary
Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Hungarian construction industry
Profiles of the leading operators in the Hungarian construction industry
This report provides a comprehensive analysis of the construction industry in Hungary. It provides:
Historical (2012-2016) and forecast (2017-2021) valuations of the construction industry in Hungary using construction output and value-add methods
Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by project type
Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
Analysis of key construction industry issues, including regulation, cost management, funding and pricing
Detailed profiles of the leading construction companies in Hungary
Reasons To Buy
Identify and evaluate market opportunities using Timetric's standardized valuation and forecasting methodologies.
Assess market growth potential at a micro-level with over 600 time-series data forecasts.
Understand the latest industry and market trends.
Formulate and validate strategy using Timetric's critical and actionable insight.
Assess business risks, including cost, regulatory and competitive pressures.
Evaluate competitive risk and success factors.
In April 2017, the Ministry of National Economy initiated the construction of the M4 dual carriageway towards the southeast of Budapest. The project includes the construction of a 44.0km-long roads which will establish a connection between the cities of Üllő and Cegléd. The project is expected to be implemented in two phases, with construction scheduled to be completed by 2019.
As a result of the Family Housing Allowance program launched in July 2015, there has been a significant increase in the number of new residential building permits. According to Hungarian Central Statistical Office, the total number of new residential building permits issued in the country rose drastically by 87.0%, going from 6,526 in 2015 to 12,206 in 2016.
In line with the growing demand for accommodation in higher education institutions, in December 2016 the government announced plans to invest HUF192.6 billion (US$689.4 million) to construct new buildings in colleges.
The European Union (EU) has played a vital role in funding major infrastructure projects in the country in recent years. In April 2017, the EU announced plans to allocate HUF10.0 billion (US$34.4 million) as financial aid for three projects to be developed by the Hungarian Gas Transport Cluster Association.
Under the National Info-communication Strategy 2014–2020, the government aims to develop the country’s digital infrastructure. As a part of the initiative, the government aims to equip the country with Next-Generation Access networks with a minimum speed of 30.0Mbps by 2018. This is expected to attract several private investments in broadband network upgrade projects.