Multi-unit residential buildings (MURBs) started to be built on less than HUF 60 billion in Q2 2022, the lowest value since 2016 (excluding H2 2020). Construction costs have greatly increased since then, that is, at constant prices, this means a much smaller construction volume.
Compared to Q1, the decline in Activity Start was around 40%, but compared to Q2 2021, there was a much smaller fallback (around 18%).
On a positive note, the preferential 5% VAT applicable to new home purchases has been extended until end-2024, so developers don’t have to rush to obtain building permits until the end of this year. Another change is that the introduction of stricter energy regulations originally effective from 1 July 2022 (occupancy permits are not to be issued for dwellings with an energy rating lower than BB) has also been postponed by two years.
However, a new administrative burden has been introduced: in case of buildings larger than 5,000sqm, and in case of new MURBs with a total useful floor area of more than 1,500sqm on one building plot and consisting of at least 6 dwellings, the National Architectural Planning Council led by the chief architect will have a veto right.