Construction in Hungary – Key Trends and Opportunities to 2022

2018-07-03
Price :
Published : Jul-2018
No. of Pages : 46

Construction in Hungary – Key Trends and Opportunities to 2022

Summary

GlobalData’s “Construction in Hungary – Key Trends and Opportunities to 2022”, report provides detailed market analysis, information and insights into the Hungarian construction industry.

Following a period of negative growth during 2016, the Hungarian construction industry recovered in 2017, supported by positive developments in regional economic conditions, a revival in both investor and consumer confidence and government investment in transport infrastructure. Consequently, the country’s construction industry registered growth of 31.6% in 2017 in real terms.

The government’s efforts to enhance transport and tourism infrastructure, coupled with financial assistance from the European Union (EU) for infrastructure development will support the growth of the industry over the forecast period (2018-2022). Under the European Structural and Investment Funds for 2014-2020, the EU is investing HUF7.8 trillion billion (US$27.6 billion) during the period of 2014-2020 to develop the transport, industrial, energy, education, healthcare and research sectors.

The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 9.27% over the forecast period, compared to 7.53% during the review period (2013-2017).

The report provides –
– The Hungarian construction industry’s growth prospects by market, project type and construction activity
– Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Hungarian construction industry
– Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Key Highlights

– GlobalData expects the infrastructure construction market to retain its leading position over the forecast period, with a share of 31.3% of the industry’s total value in 2022, driven by public and private sector investments in the development and the modernization of the country’s transport infrastructure. In the 2018 budget, the government allocated HUF50.0 billion (US$181.8 million) for the development of the country’s largest cities under the Modern Cities Program.
– In 2017, the government announced the Hungarian National Tourism Development Strategy 2030. Under this strategy, the government is promoting sports, culture and health tourism in order to attract more investment in the tourism sector. The government aims to increase the tourism sector’s contribution to the country’s GDP from 10% in 2017 to 16% by 2030, and employment from 364,000 to 450,000 over the same period. Accordingly, under the long-term framework for Hungarian tourism, the government plans to invest HUF828.0 billion (US$3.0 billion) to finance the strategy by 2030.
– In the 2018 budget, the government increased its expenditure on the education sector by HUF81.0 billion (US$294.5 million), and allocated HUF287.0 billion (US$1.0 billion) more for pensions and social services, compared to the 2017 budget spending. In a bid to improve the quality of education and competitiveness of universities, provide adequate infrastructure and increase the number of foreign students, the government allocated HUF24.0 billion (US$87.3 million) in 2017 to the University of Pécs under the Modern Cities Program.
– GlobalData expects the energy and utilities construction market output to record a forecast-period CAGR of 17.08% in nominal terms. In December 2017, the government announced plans to simplify its rules to construct small solar power plants in the country. Accordingly, the government will ease regulations on the use of farmland and provide subsidized loans to landowners to construct solar power plants.
– The total construction project pipeline in Hungary, as tracked by the Construction Intelligence Center (CIC) and including all mega projects with a value above US$25 million, stands at HUF12.6 trillion (US$45.7 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed to late-stage projects, with 57.9% of the pipeline value being in projects in the pre-execution and execution stages as of June 2018.

Scope

This report provides a comprehensive analysis of the construction industry in Hungary. It provides –
– Historical (2013-2017) and forecast (2018-2022) valuations of the construction industry in Hungary, featuring details of key growth drivers.
– Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
– Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
– Listings of major projects, in addition to details of leading contractors and consultants.

Reasons to buy

– Identify and evaluate market opportunities using GlobalData’s 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.
– Formulate and validate strategy using GlobalData’s critical and actionable insight.
– Assess business risks, including cost, regulatory and competitive pressures.
– Evaluate competitive risk and success factors.

Filed in: construction
Publisher : GlobalData
More Reports
Title Price Buy Now

Infrastructure Insight: Latin America

Infrastructure Insight: Latin America Summary Investment in infrastructure is at the core of discussion for the development of Latin America. During the CAF Conference: Infrastructure for the Integration of Latin America, which took place in Madrid in July 2018, ministers of economy, finance and planning, representatives of the private sector and experts from Latin America and Spain analyzed and identified opportunities for infrastructure development in Latin America over the next decade amounting to US$4.5 trillion, in strategic sectors such as roads, ports, airports, telecommunications, energy, water and sewerage. A combination of favorable demographic trends and the implementation of a number of legislative reforms throughout the region are generating a wide range of infrastructure i......
$2995

Construction in Brazil – Key Trends and Opportunities to 2022

Construction in Brazil - Key Trends and Opportunities to 2022 Summary Construction activity in Brazil was weak during the review period (2013-2017), due to economic slowdown, low oil prices and rising inflation. Moreover, factors such as austerity measures adopted by the government to reduce the budget deficit and corruption allegations against politicians in the Petrobras case or "Operation Car Wash" further exacerbated the macroeconomic conditions and had an adverse impact on the construction industry. The country's construction industry is expected to contract further in real terms, by 1.5% in 2018, before returning to growth in 2019. Over the remaining part of the forecast period (2018-2022), the industry is expected to be supported by the government's efforts to revitalize the econ......
$1950

Construction in Norway – Key Trends and Opportunities to 2022

Construction in Norway - Key Trends and Opportunities to 2022 Summary Norway's construction industry registered a growth of 4.4% in real terms in 2017. This was preceded by annual growth of 2.5% in 2014, 2.9% in 2015 and 4.2% in 2016. Growth during the review period (2013-2017) was driven by positive developments in regional economic conditions and government investment in energy and transport infrastructure. The industry is expected to expand over the forecast period (2018-2022), albeit at a slightly slower pace. The industry's expansion over this period is expected to be mainly supported by the government's efforts to improve the quality of infrastructure across the country. The industry will be supported by the government's ongoing efforts to develop infrastructure through large-scal......
$1950

Construction in Japan – Key Trends and Opportunities to 2022

Construction in Japan - Key Trends and Opportunities to 2022 Summary Japan's construction industry regained growth momentum in 2017, with output expanding by 2.6% in real terms - up from 1.2% in 2016. This growth was supported by the government spending in restoration of damaged civil engineering facilities and flourishing tourism sector. In the 2017 supplementary budget, the government increased its spending on the restoration of damaged civil engineering facilities from JPY109.3 billion (US$1.0 billion) in 2016 to JPY290.7 billion (US$2.6 billion) in 2017. The industry is anticipated to post a marginal growth in 2018, as a result of a decrease in building permits and generally weaker demand. Moreover, the shrinking workforce population and labor shortage is expected to hamper the indu......
$1950

Construction in Sweden – Key Trends and Opportunities to 2022

Construction in Sweden - Key Trends and Opportunities to 2022 Summary The Swedish construction industry registered growth of 6.8% in real terms in 2017, preceded by an annual average growth of 4.3% during 2014-2016. Growth during the review period (2013-2017) was driven by improvements in business confidence and consumer demand, and public and private sector investment in institutional, residential and infrastructure construction projects, leading to an increase in demand for the Swedish construction industry. The industry is expected to continue to expand over the forecast period (2018-2022), with investments in infrastructure construction, energy and utilities construction, healthcare facilities and housing projects continuing to drive growth. Under the National Transport Plan 2018-2......
$1950

Construction in Finland – Key Trends and Opportunities to 2022

Construction in Finland - Key Trends and Opportunities to 2022 Summary Finland's construction industry expanded at a relatively fast pace in 2016-2017, averaging 6.3% per year in real terms. This in part reflects the continuing recovery from the weakness recorded in the early part of the review period (2013-2017). The recent period of solid growth was also driven by positive developments in regional economic conditions, a revival in both investor and consumer confidence and government investment in renewable energy and social infrastructure. Furthermore, the European Union's (EU) financial aid to enhance the country's competitiveness supported the industry's growth during the review period. Over the forecast period (2018-2022), the industry's expansion is expected to be supported by inv......
$1950

Construction in Denmark – Key Trends and Opportunities to 2022

Construction in Denmark - Key Trends and Opportunities to 2022 Summary In real terms, the Danish construction industry registered an average annual growth rate of 2.5% during the review period (2013-2017). This growth can be attributed to ongoing government and private sector investment across the transport, residential and commercial buildings segments. The industry is expected to continue to expand in real terms over the forecast period (2018-2022), with investments in transport infrastructure construction, healthcare, manufacturing industry, educational facilities and housing projects continuing to drive growth. In order to develop the country's transport infrastructure, the government plans to invest over DKK100.0 billion (US$15.1 billion) by 2020. The government's focus on the dev......
$1950

Project Insight: Healthcare Construction Projects, The Americas

Project Insight: Healthcare Construction Projects, The Americas Summary The Americas is a varied region encompassing the affluent developed countries in North America and the developing countries in Central and South America. In North America, and in particular the US, expenditure on healthcare is relatively high when compared to the size of the economy. According to the World Bank, the US spent 16.8% of GDP on healthcare in 2015 compared to 10.4% in Canada, 8.9% in Brazil and 8.1% in Chile. Peru, by contrast, has one of the lowest healthcare expenditures in the Americas, with 5.3% of GDP. The overall projects pipeline is dominated by projects in the execution stage, with a total value of US$89.3 billion, followed by projects in planning with US$44.7 billion. Projects in the pre-executi......
$1950

Project Insight: Healthcare Construction Projects, Europe

Project Insight: Healthcare Construction Projects, Europe Summary Western Europe has an advanced healthcare sector, funded by central governments and insurance, with France, Italy, Germany and the UK having state funded healthcare systems. The private sector is also fully developed based on funding from insurance schemes which is often offered as part of employment packages. The ageing population of leading-edge ‘baby boomers', those born between 1946 and 1955, continues to put a large burden on healthcare facilities, increasing the need for acute, primary care and long-term nursing facilities across Europe. In the UK, total current healthcare expenditure stood at GBP192 billion in 2016, including both government and non-government spending. This is equivalent to 9.8% of GDP, unchanged......
$1950

Project Insight: Healthcare Construction Projects, Asia Pacific

Project Insight: Healthcare Construction Projects, Asia Pacific Summary Investment in new healthcare facilities across the Asia-Pacific region is rising at a fast pace, supported by the region's economic expansion and population growth. China, being the most populous country and the economic power for the region, has the highest value healthcare construction project pipeline, totaling US$48.6 billion. However, China is at the lower end of the measure of healthcare expenditure relative to GDP, at around 5.5% of GDP compared to the US with close to 17% and Australia's 9.4%. It is a similar situation in India, which has a project pipeline valued at US$15.9 billion, but spends less than 4% of its GDP on healthcare. The need for an increase in investment in new healthcare facilities in the r......
$1950
We use cookies to deliver the best possible experience on our website.
By continuing to use this site, or closing this box, you consent to our use of cookies. To learn more, visit our Privacy Policy