Market Research Report
Construction in Hungary - Key Trends and Opportunities to 2023
|Published by||GlobalData||Product code||661498|
|Published||Content info||53 Pages
Delivery time: 1-2 business days
|Construction in Hungary - Key Trends and Opportunities to 2023|
|Published: June 25, 2019||Content info: 53 Pages||
Construction activities in Hungary picked up sharply in 2018, with output value expanding by 22.9% in real terms - up from 17% in 2017. The industry's output value, measured at constant 2017 US dollar exchange rates, increased from US$9.1 billion in 2017 to US$11.2 billion in 2018. Growth during the review period (2014-2018) averaged 8.6% a year, and was supported by strong economic conditions, coupled with public and private sector investment in transport infrastructure, residential and commercial construction projects.
The industry's output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 5.30% over the forecast period, compared to 7.22% during the review period. The industry is consequently expected to rise from a value of US$11.2 billion in 2018 to US$14.5 billion in 2023, measured at constant 2017 US dollar exchange rates.
According to the Hungarian Central Statistical Office (KSH), the country's total construction production value in nominal terms grew by 34.3%, going from HUF2.5 trillion (US$9.1 billion) in 2017 to HUF3.3 trillion (US$12.2 billion) in 2018; this was preceded by an annual decline of 16.5% in 2016 and an annual growth of 37.4% in 2017. Over the forecast period (2019-2023), the government's efforts to enhance transport and renewable energy infrastructure will support the growth of the industry.
Infrastructure construction was the largest market in the Hungarian construction industry during the review period, accounting for 28.6% of its total value in 2018. The market is expected to increase in importance over the forecast period, to account for 32.7% of the industry's total value in 2023. Over the forecast period, the market is expected to be supported by government's investment in rail and road projects. Industrial construction accounted for 20.6% of the industry's total output in 2018, followed by commercial construction with 16.9%, residential construction with 15.3%, energy and utilities construction with 12.0% and institutional construction with 6.6%.
The total construction project pipeline in Hungary including all mega projects with a value above US$25 million - stands at HUF14.4 trillion (US$53.1 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards early-stage projects, with 66.2% of the pipeline value being in projects in the pre-planning and planning stages as of June 2019.
The report "Construction in Hungary - Key Trends and Opportunities to 2023", provides detailed market analysis, information and insights into the Hungarian construction industry, including -
This report provides a comprehensive analysis of the construction industry in Hungary. It provides -