This report provides detailed market analysis, information and insights into the Hungarian construction industry including: The Hungarian construction industry’s growth prospects by market, project type and type of construction activity Analysis of equipment, material and service costs across each project type within the Hungary Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Hungarian construction industry Profiles of the leading operators in the Hungarian construction industry. Data highlights of the largest construction projects in Hungary
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The Hungarian construction industry recorded a CAGR of -2.44% during the review period (2009–2013). The outlook for construction is favorable, as a result of increased investment in the industry. According to the Hungarian Central Statistical Office (KSH), investment in the construction industry increased by 17.2% in 2013 over 2012, whereas the volume of construction output was 9.6% higher than in 2012.
The number of contracts signed by construction companies also rose by 29.5% in 2013 over 2012. In 2013 Hungary’s central bank decided to expand its subsidized and low-priced loans to finance real estate construction. As a result of increased investment and the availability of loans at low prices, the construction industry’s output is expected to record a CAGR of 4.42% over the forecast period.
This report provides a comprehensive analysis of the construction industry in Hungary. It provides:
Historical (2009-2013) and forecast (2014-2018) valuations of the construction industry in Hungary using construction output and value-add methods Segmentation by sector (commercial, industrial, infrastructure, institutional and residential) and by project type Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services) Analysis of key construction industry issues, including regulation, cost management, funding and pricing Detailed profiles of the leading construction companies in Hungary
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Identify and evaluate market opportunities using our 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
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After a decline during the review period due to the financial crisis, the construction industry is expected to recover over the forecast period, as a result of improved economic conditions and increased investment in construction. According to Hungarian Central Statistical Office (Központi Statisztikai Hivatal – KSH), construction output in 2013 was 9.6% higher than in 2012.
In 2013, the construction of buildings increased by 10.4%, whereas the construction of civil engineering works increased by 8.6% over 2012. The number of new buildings permits issued in 2013 for residential buildings was 4,467, whereas for non-residential buildings it was 5,330.
The industry’s value add increased by 7.4% in real terms and by 12.2% in nominal terms. Hungary is a leading European destination for medical tourism. The average price of medical treatment in Hungary is 40–70% less than in the US or other European and Scandinavian countries. Dental tourism is a successful industry due to its highly advanced technology and low treatment cost. The number of medical tourist arrivals is expected to increase due to the government’s initiative to promote health tourism, and easy access by its low-cost carrier services.
Health tourism is likely to grow over the forecast period, which will support growth in the healthcare buildings category. The European Investment Bank (EIB) granted a loan of EUR250 million (US$325 million) to enhance the railway network in the country. This financial support will be provided for 2013–2016 and includes the upgrade of railway infrastructure with an aim to improve its safety, capacity and performance. The financial aid from the EIB will support the growth of the rail infrastructure category over the forecast period.
Table of Contents
1 Executive Summary
2 Market Overview2.1 Key Trends and Issues2.2 Benchmarking by Market Size and Growth
3 Commercial Construction3.1 Performance Outlook3.2 Key Trends and Issues3.3 Data and Project Highlights
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4 Industrial Construction4.1 Performance Outlook4.2 Key Trends and Issues4.3 Data and Project Highlights
5 Infrastructure Construction5.1 Performance Outlook5.2 Key Trends and Issues5.3 Data and Project Highlights
6 Institutional Construction6.1 Performance Outlook6.2 Key Trends and Issues6.3 Data and Project Highlights
7 Residential Construction7.1 Performance Outlook7.2 Key Trends and Issues
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