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The number of building permits issued in Hungary rose by 15.8% annually to 25,984 in the first three quarters of this year, the Central Statistical Office (KSH) said on Friday.

The number of permits issued for accommodation in Budapest increased by 99.3% to 8,400, while the number issued for accommodation in county towns and cities with more than 50,000 inhabitants increased by 1.0 percent to 4,517. In the country’s smaller cities, the number of building permits issued fell 2.0 percent to 6,161.

At the end of July, the Hungarian government announced a two-year extension, until the end of 2024, of a temporary preferential VAT rate of 5% for house construction.

The number of home completions rose 7.7% to 13,617 in Q1-Q3. Home completions in the capital fell 10.1% to 4,533, but rose everywhere else.

Single-detached homes accounted for 46% of completions. Houses in multi-storey buildings with multiple dwellings accounted for 42% of the total and houses in residential parks 9%.

The average size of new homes was close to 94 m², ie almost 7 m² more than in the same period a year earlier.

The share of housing built by companies was 62%.