In Hungary, the prices of building materials (steel, EPS, XPS insulation, polypropylene, polyethylene, etc.) have increased in the past months. The changes prepared by the government are aimed at enabling families and people with lower incomes to renovate their flats and build houses. However, multi-million dollar subsidies for families and low-interest loans and VAT exemptions may not be enough if prices continue to rise too quickly.
There are 5 steps to counteract this, announced at the beginning of July:
The Prime Minister's chief advisor, Márton Nagy, also pointed out that there are no grounds for a significant explosion in the prices of raw materials extracted from domestic gravel mines, which cannot be explained by, for example, rising global prices of iron and wood. According to him, the Government's decision to withdraw and transfer mining concessions is related to this.
- If mines are stopped or mining is not started, either because of State taxation of extra profit or for other reasons, the State may withdraw these mining rights. The purpose of this measure is to maintain production levels - said Nagy.
On the other hand, the head of PAIH’s office in Budapest, Marcin Karaskiewicz, sees the current situation as an opportunity for Polish companies to enter the Hungarian market.
On January 1, 2021, the Government program was launched, providing 50% co-financing for the renovation of houses / apartments for families with at least 1 child, up to a maximum of HUF 3 million (approx. EUR 8,500). At the same time, there was a reduction of the 27% VAT rate for the sale of new flats and houses to back to 5%. As predicted, the above-mentioned legislative solutions generated previously unplanned private construction investments, while the growing demand for construction services increased the prices of specialist services and construction materials. The situation may be an opportunity for Polish producers - said Marcin Karaskiewicz.