Hungarian construction market to recover in 2013-2014
According to the research company PMR’s latest report, entitled “Construction sector in Hungary 2012 – Development forecasts for 2012-2014”, weak macroeconomic environment, falling investment demand and poor household finances led to the Hungarian construction sector being in recession since 2006. As a result the value of gross value added in construction in 2011 was almost one third lower than in 2005. However, in the last quarter of 2011 the year-to-year decline of value added decelerated to only 1.4%, a direct result of accelerating public investment financed by EU funds. After 2012 the improving macroeconomic condition and higher public investment are likely to finally reverse this negative trend.
As a result, for 2012 we expect an approx. 4% fall in engineering construction output. The 2012 forecast is also supported by the volume index of new orders among engineering companies. In 2011 the volume of new orders decreased by 16% y-o-y. At the beginning of 2012 the volume index shows an increasing trend, so from 2013 and 2014 a slow increase in civil engineering output is expected.
In the coming years car manufacturing will play an important role in Hungary’s industrial construction. Apart from the manufacturing industry, the largest planned project involves the expansion of Hungary’s only nuclear power plant, in Paks. Constructions on the power plant are estimated at €8-10bn. The purpose of the expansion is to increase the capacity of the reactors to serve the growing energy needs of the population. After expansion the reactors would be in operation until 2032-2037.
In non-residential construction the industrial and warehouse sector is expected to recover from the crisis first. The wholesale and retail sector will continue to suffer not only from the moderate consumption and as a result of poor demand, but also from the government’s regulation that will prevent the issuing of building permits to many huge retail construction projects until the beginning of 2015. It is unlikely that any large developments will start in 2012. However, it is expected that by 2015 the sector will recover.
Although non-residential investors are not starting any new projects, they are initiating construction works, and many buildings are being modernised and renovated. The signs of recovery will be first visible in 2013, when an increase in output may take place. At the moment, it seems that restoring construction industry’s non-residential sector will be a slow process. The fact that an increase is forecasted for 2013 is also due to non-residential construction output in 2011 and 2012 being already so low that even a slight positive change in the economic atmosphere and business confidence can improve the situation.
This press release is based on information contained in the latest PMR report entitled “Construction sector in Hungary 2012 – Development forecasts for 2012-2014” http://www.pmrpublications.com/product/Construction-sector-Hungary-2012.
PMR (www.pmrcorporate.com) is a British-American company providing market information, advice and services to international businesses interested in Central and Eastern European countries as well as other emerging markets. PMR's key areas of operation include business publications (through PMR Publications), consultancy (through PMR Consulting) and market research (through PMR Research). Being present on the market since 1995, employing highly skilled staff, offering high international standards in projects and publications, providing one of most frequently visited and top-ranked websites, PMR is one of the largest companies of its type in the region.
This release was published on openPR.
Permanent link to this press release:
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release Hungarian construction market to recover in 2013-2014 here
News-ID: 223591 • Views: 3929
More Releases from PMR Ltd
60% of Polish SMEs use IT services
Approx. 60% of small and medium sized enterprises use IT services in Poland. Some 30% of SMEs declare to employ people responsible for IT. The number of portable computers used by SMEs has been growing. On average, there are five such computers per one SME. The proportion of companies which use EU funds to finance ICT development has gone down over the last two years. Use of IT services According to the
Ukrainian IT industry to keep on growing in 2012-2013
In the last two years Ukrainian IT market has been recovering after a sharp decline experienced in 2009. The market will continue to record double digit growth rates in 2012-2013. The macroeconomic and political situation will remain of crucial importance in the country. Current situation and key trends According to the latest report “IT market in Ukraine 2012. Development forecasts for 2012-2017” published by PMR, a market research company, the total
Retail grocery market to provide €117bn in 2014 in the CE region
PMR estimates that in 2011 the grocery market in six Central European (CE) countries was worth nearly €107bn, 2.8% more than the previous year when expressed in local currencies. The increase was generated foremost by the discount stores and supermarket segments, and was driven by the skyrocketing prices of foodstuffs. Schwarz Group, which operates the Lidl and Kaufland chains, is a leading grocery player in the CE region – as
Polish market of value added and multimedia services 2012
Value added and multimedia services in Poland 2012, Development forecasts for 2012-2016 provides readers with the newest data and sharpest analysis of business conditions and opportunities in the areas of mobile internet, fixed line and mobile telephony and pay TV and video services. It covers the market in terms of existing and projected structure and value, with an eye to the future as the markets in Poland and around the
More Releases for Hungary
Hungary Agriculture Market | Hungary Agriculture Industry | Agriculture Market R …
Hungary agriculture product is a mixture of staple crops, famous specialty things like wine and livestock product, and basic stock. Hungary's most significant crops embrace corn, wheat, sugar beets, barley, potatoes, and flower seeds. Hungary additionally has vital forestry resources, though poor forestry management reduced Hungary's forestry resources beneath communism. The enlargement of agriculture, a high rate of exploitation, and inadequate re-planting of trees contributed to a big decline within
Hungary bags world’s Best Architecture accolade
The Museum of Ethnography, which is part of the Liget park project based in Bucharest has won the fiercely contested title of World’s Best Architecture at the 2018 International Property Awards. The project was one of over 1700 entries from 115 countries, scrutinised by a judging committee, which is chaired by four UK Lords as well as over 80 global experts. The International Property Awards, which recognises the finest property,
New Zoom'n'Joy branch office in Hungary
Today we are very pleased and proud to inform you about the opening of new Zoom'n'Joy branch store in Budapest, Hungary. Zoom'n'Joy is constantly working on expanding its geographic presence in the world in order to give the maximum number of customers an opportunity to purchase high-quality and affordable optics. The opening in Budapest, one of the most populated cities in Europe, is very big step forward for Zoom'n'Joy and a
Retail: Fuel Cards in Hungary Market
MarketResearchReports.Biz presents this most up-to-date research on "Fuel Cards in Hungary 2016". Fuel Cards in Hungary 2016 is invaluable for issuers of fleet cards, fuel retailers, fleet leasing companies and other suppliers to the sector. Based on research with issuers and fuel retailers it provides commercial (B2B) fuel card volume (split by fleet and CRT), value and market share forecasts to 2021, key data on independent and oil company card issuers
Agrochemicals Market in Hungary
ReportsWorldwide has announced the addition of a new report title Hungary: Agrochemicals: Market Intelligence (2016-2021) to its growing collection of premium market research reports. The report “Hungary: Agrochemicals: Market Intelligence (2016-2021)” provides market intelligence on the different market segments, based on type, active ingredient, formulation, crop, and pest. Market size and forecast (2016-2021) has been provided in terms of both, value (000 USD) and volume (000 KG) in the report. A
Bulk order received from Opel Szentgotthard, Hungary
LTA Industrial Air Cleaning has received a bulk order from Opel Szentgotthard (Hungary), for delivery of suction systems for two crankshaft-lines, three block- and two cylinder head lines in the engine production. While doing this the scope of supply from LTA contains the building of the total devices from the projecting, delivery, building site management, installation, start-up, training and measurements of the suction devices. The project comprises 11 high-duty filters