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Building industry

Summary of the sector

- Sectors: Building industry

Situation of the building industry in Hungary

  • In April 2013, construction output increased by almost 10% according to year-on-year data. This growth contributed to the construction of building structures and road and railway constructions. In the first four months of 2013, the output grew by 6.3% year-on-year.
  • The output of both main groups of constructions rose in April 2013. The construction of buildings went up by 7.4%. This increase was due to the construction of some industrial buildings. The construction of civil engineering works showed an increase of 12.6%, owing to road and railway reconstructions.
  • In April 2013, out of the divisions of construction, the output of the division of construction of buildings - containing the organization of building projects and the construction of structures of buildings - grew by 17.1%. The division of construction of civil engineering works increased by 10.7%. The division of specialized construction activities, representing more than two fifths of the construction output, rose at a rate of 4.8% in output year-on-year.
  • At the end of April 2013, the stock of orders of construction enterprises was 13.5% higher than a year ago. Within this, the data of the two main groups of constructions changed in opposite directions. The stock of orders for buildings was 12.7% lower than one year ago, while that for civil engineering works went up by one quarter.
  • The building market is characterized by a high number of enterprises: at the end of 2012 there were 95,460 enterprises.

Building industry associations in Hungary

State bodies

Ministry of Interior

Deputy State Secretariat for Planning and Building

  • Planning
  • Building
  • Building monitoring system
  • Urban development
  • National Chief Architect’s Office


Ministry of Economy, State Secretariat for Domestic Economy

  • Sectoral management of the building industry and building materials industry
  • Implementation of the housing creation programme of the New Széchenyi Plan
  • Drafting of legal regulations on the requisitioning of real estate, state funding for housing, professional and examination requirements for real estate vocational training courses
  • Analysis of data on the housing stock and the mortgaging activities of banks

http://www.kormany.hu/en

Hungarian building industry exports

  • Architectural planning offices: Hungarian planning offices staffed by qualified and professional Hungarian architects are currently also struggling with a severe lack of projects; the intellectual fruits of these offices are exportable to virtually every country in the world
  • Building materials production: delivery costs are a restrictive element for exports by building materials industry companies, therefore their potential export markets tend to be in the countries within the Carpathian Basin region
  • Building industry contracting companies: many contracting companies are small-size enterprises, which are currently oriented towards Austria and Germany, while the larger contracting enterprises also have a presence in more distant regions, for instance on the Middle Eastern market and countries of the Commonwealth of Independent States
  • Innovation products, know-how: given their uniqueness, these products and technologies are marketable in many countries around the globe, particularly if the given country enforces patent protection. One such example is “glass concrete” that was developed by a Hungarian engineer

Contact:

Nándor Zemniczky
E-mail: nandor.zemniczky@hita.hu