Transport to drive Hungarian construction
By Sarah Ann McCay23 May 2013
Construction output in Hungary could increase by as much as 5% in the second half of 2013, according to European market research firm PMR.
After a slight drop in 2012, the value of construction output in Hungary will be driven mostly by improvements in the civil engineering segment this year.
PMR predicts the increase in engineering output will be led by transport infrastructure construction, including road, rail and tramways. Sewerage projects are also expected to become more active.
This year is forecast to deliver a 10% increase in civil engineering output that may go on to slow down slightly in 2014 as a result of the EU 2007-2014 budget coming to an end. However, from 2015, and thanks to a new EU financial programme, the sector will be revived, supported by construction work on new investment projects.
It is expected that economic recovery in Hungary could even lead to some airport infrastructure or in heavy industry projects being reactivated.
However, PMR points out that Hungary’s residential market is still in decline. It stated, “The construction of new homes has been declining for years, reaching a shockingly low level in 2012. It would also seem that the bottom has not yet been reached.”
However, with the government working on a new housing subsidy system, there is hope that residential construction is poised to experience some degree of recovery after 2013.