Hungarian Experts Unveil Innovative Solution to Housing Crisis

Hungary’s Housing Crisis: Insights from ÉVOSZ Chairman László Koji

In a recent statement following the release of residential construction and permit data by the Central Statistics Office (KSH), László Koji, the chairman of the Construction Industry Association ÉVOSZ, projected that Hungary could see around 12,000 new homes completed by 2025. Additionally, he noted that approximately 200,000 homes might undergo renovation in the coming years. This provided a glimmer of hope as the nation grapples with an ongoing housing crisis.

A Shifting Landscape

Koji acknowledged a “positive shift” in the construction and renovation markets, indicating that they have likely hit rock bottom. However, he cautioned that the impacts of governmental measures designed to support home purchases and renovations might not be fully reflected in the data until 2026.

ÉVOSZ is actively working on proposals aimed at protecting local businesses within the European Union, particularly from competition posed by building materials and contracting capacities from non-EU countries.

Proposals for a Sustainable Future

In an effort to address the housing challenges, ÉVOSZ has made several recommendations to the government. These include:

1. Expand Home Renovation Support: ÉVOSZ urges the government to broaden initiatives that support home renovations, particularly in smaller communities.

2. Relaunch the Green Home Programme: The association advocates for the reintroduction of the central bank’s Green Home Programme to stimulate energy-efficient housing.

3. City Quarter Rehabilitation: They proposed a city quarter rehabilitation programme aimed at implementing energy efficiency upgrades.

4. Nonprofit Home Construction Support: ÉVOSZ recommends governmental support for nonprofit initiatives aimed at building affordable homes.

5. Long-Term Renovation Programme: A programme focused on renovating older prefabricated concrete apartment blocks is also suggested.

6. Tax Incentives: The association calls for a five-year exemption from building taxes for new residential properties and recommends maintaining the reduced 5% VAT rate on new home construction through 2030.

7. Prioritize Modular Homes: Regulatory measures to support prefabricated and modular housing are deemed essential, along with a priority designation for residential property investments consisting of over 500 homes.

Looking Ahead

As Hungary seeks solutions to its housing crisis, the suggestions from ÉVOSZ could play a vital role in shaping a sustainable future for the construction industry. The hope is that with concerted efforts and support from the government, the housing landscape can improve significantly in the coming years.

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