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Construction sector in Hungary 2011

Development forecasts for 2011-2013

Construction sector in Hungary 2011 Development forecasts for 2011-2013

June 2011
Pages: 101
Delivery: PDF


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PMR publication on the construction sector in Hungary:
  • describes the current situation of the construction industry in Hungary
  • presents the opportunities arising on the market for different types of companies and investors
  • responds to the demand for forecasts about the Hungarian construction market
  • shows the long-term potential of the Hungarian construction sector
  • analyses possible market recovery after few years of decline.

 Benefit from:

  • most up-to-date information
  • comprehensive overview and multi-angle approach
  • tables presenting planned projects in each segment of construction industry
  • detailed profiles of top contractors
  • forecasts for the future development of the construction industry.

Report description

Did you know... 
There are approximately 98,000 construction companies registered in Hungary.
In 2010, a record length of 172 km of motorway was completed in Hungary.
In 2010 the cement consumption in Hungary dropped to 2.6 million tonnes, which is equivalent to 1992 figures.
In 2010 49% of the construction output was produced in the Central Hungary region.
During 2010, no major foreign investors left Hungary.
Between 2001 and 2009, approximately 70 km of motorway was built each year in Hungary.
The most significant foreign investor in Hungary is Germany.
This report offers a comprehensive overview of the Hungarian construction industry. It analyses the current market situation in the whole industry, as well as in each of the market segments: residential, non-residential, and civil engineering construction. The publication also provides forecasts for 3 years, until 2013, and is further enhanced by the profiles of the largest construction companies active in the Hungarian construction market.
 
Key topics
  • analysis of the Hungarian construction market as a whole and of its key constituents, such as prices, employment and wages, number of companies, major segments, etc.
  • in-depth analysis of the factors that have or may have an impact on the future development of the Hungarian construction market
  • analysis of the situation in the civil engineering sector
  • analysis of the situation in the residential construction sector
  • analysis of the situation in the non-residential construction sector
  • profiles of major players active on the Hungarian construction market.

In this report you can find answers to the following questions

  • What is the current and forecasted value of the Hungarian construction market and its individual segments?
  • What is the expected growth rate of the market and which segment will see fastest growth?
  • What are the sources of financing for transport infrastructure construction?
  • How have prices in construction developed in recent years?
  • What are the plans for development of the country’s infrastructure?
  • Who is the biggest player on the Hungarian construction market?
  • What are the major projects in each category of Hungarian market?
 And many more! 
 

The publication is an indispensable source of information…

… when starting operations on the Hungarian construction market
… when trying to assess the potential of the market
… when effecting a merger or acquisition on the construction market
…when developing predictions regarding the future revenue stream for a company
…when analysing the structure of the Hungarian construction market
…when monitoring projects to potentially take part in
…when estimating a particular company’s share in the market
…when making in-house analyses for the management or shareholders.

It is designed for:

  • manufacturers and distributors of building materials
  • manufacturers and distributors of construction machinery and equipment
  • companies that have already entered or are considering an entry on the Hungarian construction market
  • companies that design and manage construction projects
  • consulting, research and analysis firms
  • government institutions, embassies, universities and research institutes
  • chambers of commerce, trade and industry organisations
  • financial institutions (banks, brokerage houses, infrastructure funds, investment funds, private equity funds).

Extract from this report

  • In contrast to the residential and non-residential segments, where the private sector is the main source of investment, the civil engineering construction segment is more dependent on government and EU funding.
  • In 2010, eight new hotels were opened in Budapest, all of them being of the four-star category. In 2011, six new hotels are planned for the capital.
  • One-quarter of Hungary’s housing stock was built before 1945, and nearly two-thirds were built during the socialist period (1945 to 1990).

Market commentary by expert

The Hungarian construction industry is currently at its worst since 2006. Fortunately, some positive development in the Hungarian economy was already observed in 2010, and from 2011 onwards we expect further improvement. As a result, the construction output should finally show growth, albeit minimal in 2012, but followed by more marked growth in 2013.

Bartłomiej Sosna, Senior construction market analyst

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  1. Report methodology p. 7

  2. Executive summary p. 9

  3. Macroeconomic overview p. 17

    • Introduction p. 17
    • Gross Domestic Product p. 18
    • Gross Value Added in construction p. 18
    • Gross fixed capital formation p. 19
    • Foreign direct investment p. 20
    • Inflation p. 21
    • Economic outlook p. 22
  4. Construction overview p. 23

    • Construction output p. 25
    • Construction companies p. 27
    • Employment and wages p. 30
    • Construction prices p. 32
    • Business confidence in construction p. 33
    • Building materials industry overview p. 33
    • Legal changes relevant to the construction market p. 35
      • Faster administrative procedures p. 35
      • Plot reconstruction permit p. 35
    • Development forecast for construction output in 2011-2013 p. 36
  5. Civil engineering construction p. 37

    • Situation on the civil engineering construction market p. 37
    • Environmental protection projects p. 39
    • Road transport p. 41
    • Railway transport p. 45
    • Air transport p. 49
    • Investments in heavy industry p. 51
    • Development forecasts for 2011-2013 p. 53
  6. Non-residential construction p. 55

    • Situation on the non-residential construction market p. 55
    • Industrial and warehouse construction p. 57
    • Retail and service construction p. 59
    • Office construction p. 61
    • Hotel construction p. 64
    • Development forecasts for 2011-2013 p. 68
  7. Residential construction p. 69

    • Housing stock p. 69
    • Building and dwelling completions p. 70
    • Housing starts and building permits p. 73
    • Overview of major residential projects p. 75
    • Residential construction development programmes p. 76
    • Mortgage market p. 78
    • Housing prices p. 80
    • Development forecasts for 2011-2013 p. 82
  8. Profiles of 10 largest contractors p. 85

    • Strabag p. 85
    • Porr Epitesi p. 86
    • Hidepito p. 86
    • Colas Hungaria p. 87
    • Arcadom p. 88
    • Market Epito p. 89
    • KESZ Epito p. 90
    • Magyar Epito p. 91
    • Aktual Bau Epitoipari p. 92
    • Swietelsky Epito p. 93
  9. List of graphs p. 95

  10. List of tables p. 97

  11. About PMR p. 99

  12. Contact PMR p. 100

List of graphs

  1. Construction output in Hungary (HUF bn and nominal change), 2007-2013
  2. Civil engineering construction output in Hungary (HUF bn and nominal change), 2007-2013
  3. Non-residential construction output in Hungary (HUF bn and nominal change), 2007-2013
  4. Residential construction output in Hungary (HUF bn and nominal change), 2007-2013
  5. GDP growth in Hungary (%), 2001-2013
  6. Gross Value Added in construction and manufacturing in Hungary (%, y-o-y), 2000-2011
  7. Gross fixed capital formation in Hungary (%, y-o-y), 2000-2012
  8. Foreign direct investment in Hungary (€ bn), 2000-2010
  9. Investment outlay in the construction sector (HUF m, current prices) and volume index of investment (y-o-y) in Hungary, 2005-2010
  10. Consumer price index in Hungary (%), 2000-2013
  11. Construction market in Hungary (HUF bn and nominal change), 2007-2010
  12. Construction output in Hungary (%, y-o-y), Jan 2009-Mar 2011
  13. Construction market breakdown in Hungary, 2005-2010
  14. Construction output in Hungary (2005=0), 2000 − Jan-Feb 2011
  15. Types of registered construction companies in Hunagry, 2009
  16. Number of operating construction companies in Hungary, 2000-2008
  17. Average gross salary in the construction sector in Hungary (HUF and y-o-y change), 2000-2010
  18. Number of employees in the construction sector in Hungary (‘000 and y-o-y change), 2000-2010
  19. Economic confidence index in Hungary, Jan 2008-Mar 2011
  20. Production of cement, lime and plaster in Hunagry (HUF bn), 2004-2010
  21. Manufacture of articles of concrete, cement and plaster in Hunagry (HUF bn), 2004-2010
  22. Construction output in Hungary (HUF bn and nominal change), 2007-2013
  23. Civil engineering construction output in Hungary (HUF bn and y-o-y change), 2000-2009
  24. Civil engineering construction output in Hungary, by type of building, 2009
  25. Total length of the motorway and expressway network in Hungary (km), 2001-2011
  26. Existing, under construction and planned motorways in Hungary, 2011-2015
  27. Planned railway development in Hungary, 2007-2013
  28. TEN-T network tracks planned to be repaired and/or modernised by 2020, 2007-2013
  29. Number of passengers at Budapest-Ferihegy international airport (million), 2002-2010
  30. Civil engineering construction output in Hungary (HUF bn and nominal change), 2007-2013
  31. Non-residential construction output in Hungary (HUF bn and y-o-y change), 2000-2009
  32. Non-residential construction output in Hungary, by type of building, 2009
  33. Construction permits in non-residential segment, by number of buildings and floor area (m2) in Hungary, 2001-2010
  34. Total modern industrial and warehouse stock in Hungary (m2), 2005-2010
  35. Modern gross leasable (GLA) area opened in Hungary (‘000 m2), 2000-2011
  36. Office rentals in Hungary by types of contract, Q4 2010
  37. New offices opened in Hungary (m2), 2005-2011
  38. Number of guests and number of nights spent in Hungarian hotels, 2001-2010
  39. Hotels operating in Hungary, 2001-2010
  40. Non-residential construction output in Hungary (HUF bn and nominal change), 2007-2013
  41. Hungary’s housing stock, by types of dwellings, 2010
  42. Number of dwellings completed in Hungary and y-o-y change, 2001-Q1 2011
  43. Dwellings completed in Hungary, by region (number and y-o-y change), 2010
  44. Dwelling construction in Hungary, by purpose, 2000-2010
  45. Number of dwelling construction permits in Hungary and y-o-y change, 2001-Q1 2011
  46. Number of dwellings constructed by the government, companies and individuals in Hungary, 2001-2010
  47. Home loans total stock in Hungary (’000), 2002-2010
  48. Home loans total stock in Hungary (HUF bn), 2002-2010
  49. Dwelling price index in Hungary (%), 1999-2010
  50. Number of dwelling transactions in Hungary, 1999-2010
  51. Costs of residential constructions in Hungary (%), 2001-2010
  52. Homes completed in Hungary (‘000 and y-o-y change), 2004-2013
  53. Residential construction output in Hungary (HUF bn and nominal change), 2007-2013

List of tables

  1. Forecasts for the main economic indicators in Hungary for 2010-2013 10,
  2. Construction output in Hungary, by region (HUF m and y-o-y change), 2010
  3. New orders awarded to construction companies in Hungary (%, y-o-y), Q3 2008-Q4 2010
  4. Construction output in Hungary, by type of building, 2007-2009
  5. Gross wages in the construction industry in Hungary, 2010
  6. Construction price indices in Hungary (%, y-o-y), 2008-2010
  7. Timelines for administrative procedures in construction in Hungary, operative from January 2011
  8. Debt-to-GDP ratio in Hungary (%), 2001-2010
  9. Developments of Environment and Energy Operational Programme (EEOP) in Hungary
  10. Major road projects currently under construction in Hungary, 2011
  11. Major road construction projects in Hungary, 2011-2020
  12. Major railway construction projects in Hungary, 2011-2015
  13. Major power projects in Hungary, 2011-2020
  14. Real estate yields in the industrial and warehouse sector in Hungary (%), 2009-2010
  15. New rents and openings in the industrial and warehouse sector (m2), 2010
  16. The largest industrial and warehouse projects planned in Hungary, 2011-2014
  17. Retail and service buildings planned and under construction in Hungary, 2011-2014
  18. The largest office construction projects planned in Hungary, 2011-2012
  19. Real estate yields in the office sector in Hungary (%), 2009-2010
  20. Change in tourist traffic in hotels and other types of accommodation in Hungary (%, y-o-y), 2010
  21. Hotel openings in Budapest in 2010 and 2011
  22. The largest hotel construction projects planned in Hungary, 2011-2012
  23. Average price of hotel rooms in Hungary (HUF), 2007-2011
  24. Number of residential buildings and area of floor space to be built in Hungary according to data from building permits, 2001-2010
  25. Average dwelling size in Hungary, 2005-2010
  26. Dwelling construction in Hungary, by entity responsible for construction, 2009-2010
  27. Dwelling construction in Hungary, by purpose of construction, 2009-2010
  28. Dwelling construction in Hungary, by type of building, 2009-2010
  29. Dwelling construction in Hungary, by type of contractor, 2009-2010
  30. Major housing projects in Hungary, 2011-2018
  31. Value of outstanding home loans in Hungary (HUF bn), H1 2010
  32. Average term for home loans in Hungary, 2001-2009
  33. Average home prices in major cities in Hungary, 2011
  34. Key financial data for Strabag-MML Kft., 2007-2009
  35. Key financial data for Porr Epitesi Kft., 2007-2009
  36. Key financial data for Hidepito Zrt, 2006-2009
  37. Key financial data for Colas Hungaria, 2006-2009
  38. Key financial data for Arcadom, 2006-2009
  39. Key financial data for Market Epito, 2006-2009
  40. Key financial data for KESZ Kft., 2006-2009
  41. Key financial data for Magyar Epito, 2006-2009
  42. Key financial data for Aktual Bau, 2006-2010
  43. Key financial data for Swietelsky, 2006-2009
Aktual Bau Epitoipari
Arcadom
Atenor Group Hungary
Colas Hungaria
Echo Investment
Erste Group Immonent
Futureal
Hidepito
KESZ Epito
Magyar Epito
Market Epito
Nanette REG
Orco Property Group
OTP Ingatlan
Porr Epitesi
R-CO Ingatlanforgalmazo
Skanska
Strabag
Swietelsky Epito
Trigranit
Wing

and more...
Construction sector in Hungary 2011
Development forecasts for 2011-2013

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