Hungary Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026
Summary
GlobalData has marginally revised down the estimated growth for Hungary’s construction industry in 2022, with the industry now expected to grow by 2.3% in real terms this year, from the earlier estimate of 3.3%. This downward revision is primarily due to strengthening headwinds stemming from the rise in construction costs, high inflation, and rising interest rates. Following strong growth recorded in the first quarter of the year (20.4% YoY) on the back of a strong performance in 2021, growth in the industry has since begun to weaken; recording growth of just 3.3% YoY in Q2, reflecting the impact of the conflict in Ukraine on construction costs and investor confidence. According to the Hungarian Central Statistical Office (KSH), the overall construction price index rose by 3.5% year on year (YoY) in H1 2022. In response to rising inflation, the Central Bank of Hungary increased the interest rate by around 10 percentage points since the beginning of the year, taking the rate from historic lows to 13% as of September 2022—its highest rate since January 2000-with further monetary tightening measures expected in the coming quarters. These challenges are expected to weigh on the construction industry from the demand and supply side in the second half of this year and in 2023.
The industry is expected to return to growth in 2024 and register an annual average growth of 5.1% from 2024 to 2026, supported by the government’s focus on improving regional connectivity through the development of the country’s railway and road transport infrastructure, coupled with its efforts to boost renewable energy production. To reduce greenhouse gases, the government plans to shift its focus to renewable energy as the primary source of electricity production and set a target of achieving a 20% share of renewables in the total electricity generation mix by 2030 and 30% by 2040. This will be partially supported by investments totaling HUF5.3 trillion ($18.1 billion) over the next seven years, announced by the government in September 2022.
The report provides detailed market analysis, information and insights into the Hungary’s construction industry, including -
- Hungary’s construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Hungary’s construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
This report provides a comprehensive analysis of the construction industry in Hungary. It provides -
- Historical (2017-2021) and forecast (2022-2026) valuations of the construction industry in Hungary, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
- Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using GlobalData's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
- 1 Executive Summary
- 2 Construction Industry: At-a-Glance
- 3 Context
- 3.1 Economic Performance
- 3.2 Political Environment and Policy
- 3.3 Demographics
- 3.4 COVID-19 Status
- 3.5 Risk Profile
- 4 Construction Outlook
- 4.1 All Construction
- Outlook
- Latest news and developments
- Construction Projects Momentum Index
- 4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.7 Residential Construction
- Outlook
- Project analytics
- Latest news and developments
- 5 Key Industry Participants
- 5.1 Contractors
- 5.2 Consultants
- 6 Construction Market Data
- 7 Appendix
- 7.1 What is this Report About?
- 7.2 Definitions
- 7.3 CRI Methodology
- 7.4 GlobalData Construction
- Contact Us
- List of Tables
- Table 1: Construction Industry Key Data
- Table 2: Hungary, Key Economic Indicators
- Table 3: Hungary, Commercial Construction Output by Project Type (Real % Change), 2017-26
- Table 4: Hungary, Top Commercial Construction Projects by Value
- Table 5: Hungary, Industrial Construction Output by Project Type (Real % Change), 2017-26
- Table 6: Hungary, Top Industrial Construction Projects by Value
- Table 7: Hungary, Infrastructure Construction Output by Project Type (Real % Change), 2017-26
- Table 8: Hungary, Top Infrastructure Construction Projects by Value
- Table 9: Hungary, Energy and Utilities Construction Output by Project Type (Real % Change), 2017-26
- Table 10: Hungary, Top Energy and Utilities Construction Projects by Value
- Table 11: Hungary, Institutional Construction Output by Project Type (Real % Change), 2017-26
- Table 12: Hungary, Top Institutional Construction Projects by Value
- Table 13: Hungary, Residential Construction Output by Project Type (Real % Change), 2017-26
- Table 14: Hungary, Top Residential Construction Projects by Value
- Table 15: Hungary, Key Contractors
- Table 16: Hungary, Key Consultants
- Table 17: Hungary, Construction Output Value (Real, $ Million)
- Table 18: Hungary, Construction Output Value (Nominal, HUF Billion)
- Table 19: GlobalData Construction Market Definitions
- Table 20: Risk Dimensions
- Table 21: Ratings, Scores and Definitions
- List of Figures
- Figure 1: Eastern Europe, Construction Output (Real % Change), 2020-26
- Figure 2: Hungary, Construction Output by Sector (Real % Change), 2020-22 and 2023-26
- Figure 3: Hungary, COVID-19 Confirmed Cases
- Figure 4: Hungary, Risk Summary
- Figure 5: Hungary, Risk Regional Comparison
- Figure 6: Hungary, Construction Output Value (Real, $ Billion, 2017 Prices and Exchange Rate), 2017-26
- Figure 7: Hungary, Construction Output Value, by Sector (Real, $ Million), 2017-26
- Figure 8: Hungary, Construction Value Add (HUF Million, Average Prices of 2015)
- Figure 9: Hungary, Gross Fixed Capital Formation in Construction (HUF Million, Chain Linked Volumes 2015)
- Figure 10: Hungary, Volume Indices of the National Economy's Investments for Construction (Corresponding Period of the Previous Year=100)
- Figure 11: Hungary, Employment in Construction (In Thousand)
- Figure 12: Hungary, Construction Permits Issued (In Number)
- Figure 13: Hungary, Construction Projects Momentum Index
- Figure 14: Eastern Europe, Construction Projects Momentum Index
- Figure 15: Hungary, Commercial Construction Output by Project Type (Real, $ Million), 2017-26
- Figure 16: Hungary, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 17: Hungary, Wholesale and Retail Trade Value Add (HUF Million, Average Prices of 2015)
- Figure 18: Hungary, Construction Permits Issued for Commercial Buildings (In Number)
- Figure 19: Hungary, Construction Permits Issued for Agricultural Buildings (In Number)
- Figure 20: Hungary, Total Overnight Stays (In Thousands)
- Figure 21: Hungary, Accommodation and Food Service Value Add (HUF Million, Average Prices of 2015)
- Figure 22: Hungary, Industrial Construction Output by Project Type (Real, $ Million), 2017-26
- Figure 23: Hungary, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 24: Hungary, Volume Indices of the National Economy's Investments in Manufacturing (Corresponding Period of the Previous Year=100)
- Figure 25: Hungary, Manufacturing Value Add (HUF Million, Average Prices of 2015)
- Figure 26: Hungary, New Manufacturing Order Index (at Constant Prices, Corresponding Period of Previous Year = 100)
- Figure 27: Hungary, Construction Permits Issued for Industrial Buildings (In Number)
- Figure 28: Hungary, Total Exports (HUF Billion, Nominal Prices)
- Figure 29: Hungary, Infrastructure Construction Output by Project Type (Real, $ Million), 2017-26
- Figure 30: Hungary, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 31: Hungary, Volume Indices of the National Economy's Investments in Transportation and Storage (Corresponding Period of the Previous Year=100)
- Figure 32: Hungary, Transportation and Storage Activities Value Add (HUF Million, Average Prices of 2015)
- Figure 33: Hungary, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2017-26
- Figure 34: Hungary, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 35: Hungary, Volume Indices of the National Economy's Investments in Electricity, Gas, Steam, and Air Conditioning Supply (Corresponding Period of the Previous Year=100)
- Figure 36: Hungary, Volume Indices of the National Economy's Investments in Water Supply; Sewerage, Waste Management, and Remediation (Corresponding Period of the Previous Year=100)
- Figure 37: Hungary, Information and Communication Value Add (HUF Million, Average Prices of 2015)
- Figure 38: Hungary, Institutional Construction Output by Project Type (Real, $ Million), 2017-26
- Figure 39: Hungary, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 40: Hungary, Volume Indices of the National Economy's Investments in Education (Corresponding Period of the Previous Year=100)
- Figure 41: Hungary, Volume Indices of the National Economy's Investments in Human Health and Social Work (Corresponding Period of the Previous Year=100)
- Figure 42: Hungary, Human health and Social Work Activities Value Add (HUF Million, Average Prices of 2015)
- Figure 43: Hungary, Education Value Add (HUF Million, Average Prices of 2015)
- Figure 44: Hungary, Residential Construction Output by Project Type (Real, $ Million), 2017-26
- Figure 45: Hungary, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 46: Hungary, Real Estate Value Add (HUF Million, Average Prices of 2015)
- Figure 47: Hungary, Volume Indices of the National Economy's Investments in Real Estate (Corresponding Period of the Previous Year=100)
- Figure 48: Hungary, Construction Permits Issued for Residential Buildings (In Number)
- Figure 49: Hungary, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 50: Hungary, Headquarters of Key Consultants (% of Total Project Pipeline)
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