Construction sector growth

Construction_sector_growth.jpgThe Hungarian Central Statistics Office (KSH) reported that the construction sector output has recorded a growth of 8.8% in November last year. According to the workday-adjusted figures and the unadjusted figures, this rise in the construction sector has been recorded for the 22nd month in a row. New orders in the construction sector mean that foreign investors in Hungary can look to this business sector as a potential investment area in Hungary.

The buildings segment and the civil engineering segment

The evolution of the construction sector in Hungary in 2014 has not been an equal one in all sectors. While new orders for buildings fell slightly, the civil engineering sector recorded a boost.  Despite these fluctuations, the output of the sector reached the amount of 213.3 billion HUF in November.
The new buildings segment seems to have has a slightly lower evolution in 2014 than the civil engineering segment that recorded an output 23% larger than in 2013. In a seasonally and calendar adjusted month-on-month comparison with 2013, the construction sector output fell by 1.1%, the output for the buildings segment went up by 7% and the engineering output rose by 1%.
The Hungarian Central Statistics Office explains the boost in the engineering sector by the number of railway renovations and road construction, and other utilities developments. 

Investing in the Hungarian construction sector

Analysts estimate that the civil engineering and non-residential construction sector are most likely to be the backbone of the Hungarian construction sector in 2014-2019. The transport infrastructure seems to receive the most attention from investors but other construction projects, like environmental protection related constructions are catching up. Foreign investors in Hungary could influence the residential construction sector by investing more in this area and help develop the sector through new residential construction projects.
If you are interested in the legislation for investments or simply in purchasing real estate in Hungary, our Hungarian law firm can offer you various legal services.