Hungarian construction industry to repeat 2018 performance

The revenue of the Hungarian construction industry could be as high as HUF 4,000 billion this year, which means that it will fall short of last year’s performance (HUF 4,400 billion) and match the 2018 figure, said László Koji, the Chairman of the Hungarian National Association of Construction Contractors, in a TV interview last Friday. The HUF 4,000 billion figure remains fairly high compared to previous periods, because the 2018 figure was the result of two years of exceptionally strong growth in 2017 and 2018.

Mr Koji noted that in the first six months of 2020, the government commissioned projects in about the same amount as last year, while the value of local authority projects fell by 50%. He said that the construction of homes and apartments remained one of the main drivers of the Hungarian economy.

With regard to 2021 measures introduced as part of the government’s family support policy, Mr Koji noted that it was important that VAT on home construction could be calculated six years ahead, since the VAT rate would be reduced to 5% through 2026 on homes with occupancy permits received before the end of 2022.

He pointed out that a major benefit of the  government’s home renovation support scheme was that it contributed to a cleaner market, because invoices had to be presented for works performed under the scheme.