Analysts: construction this year can be increased by 22 percent
MTI Picture: OPH
November 12, 2018
Construction may increase by 22 percent compared to the previous year, and next year, according to current perspectives, additional growth of 15 percent will be achieved – comments by market analysts on the CSO report on Monday construction work in September.
According to the Central Bureau of Statistics (HCSO), in September, production in construction was 25.8% more than in the previous year, almost identical to the revised figure of 25.7% of the previous year.
What Laszlo, chairman of the National Building Contractors Association (EVOSZ), told MTI that construction had reached the highest performance (375.3 billion forints) in September this year, while the sector continues to grow at monthly prices do more. For this reason, the association has changed this year's forecast, so instead of the previously expected 18% increase in production
they represent an increase of 20-22 percent in construction, which may exceed the value of HUF 3000 billion.
EVOSZ believes that the momentum of the construction sector will remain until 2020, so that even in 2019 two-digit production growth is expected.
Laszlo also reported that construction works were very high – according to HCSO, the value of construction company contracts at the end of September was 42.5 percent more than a year earlier – 80 percent of construction companies are almost completely related to the end of next year.
The federal federation's president, in connection with the extension of the VAT rate of 5 percent to the purchase of a new home, said that the government interrupted this type of incentive until December 31, 2019, but by 2023, but abolished the time pressure on the construction since this return affects 20,000 houses that are already under construction, but will not be completed by the end of next year.
He emphasized the rapid investment that is conditioned by the demand of the market, which is why the biggest challenge is facing further growth in the sector of procurement of tools and equipment for improving efficiency, technological investments and establishing stable subcontracting systems.
An analyst at Takarekbank, Andrew Horvat, commented in a comment to the MTI that, in light of data from September, in 2018, would amount to about 22 percent of annual growth in construction, while in 2019, the growth rate of the sector could exceed 15 percent.
Construction with an average growth of 29.2 percent in the third quarter, construction continued to significantly contribute to GDP growth in the period from July to September, he added.
He also reported that, according to the data from the Round Table for Real Estate Development (IFK) covering a significant part of the construction industry
more than 1.5 million square meters of real estate are in the construction phase, the value of investments exceeds 680 billion forints.
This is an absolute record, with this amount, Hungary can get the title of the largest real estate development market in the region. According to real estate, 41 percent have offices, 34 percent of apartments, 16 percent are commercial, 8 percent are logistics, one percent is hotel development.
He also said that in the construction industry, he expected a big increase in wages and salaries in the next few years, given the shortages of the workforce and increasing efficiency, according to analysts, he said that the trend has already begun to start a gradual return to the Hungarian economy and alleviate capacity constraints for construction.