As Q4 2017 permit and completion data are being published, we’ve been updating our interactive permit & completion charts for residential and non-residential buildings in the 8 Eastern European countries EECFA covers
and in Hungary (covered by Buildecon in EUROCONSTRUCT)
Our permit-completion graphs about residential dwellings and non-residential buildings have been updated with the latest figures.
Here you can follow the developments on interactive charts for all the 8 Eastern European countries we are dealing with in EECFA + Hungary Buildecon is reporting about for EUROCONSTRUCT.
The World Bank has prepared its first Subnational Doing Business report on Bulgaria, Hungary and Romania entitled Doing Business in the European Union 2017: Bulgaria, Hungary and Romania. The report is based on the surveys conducted last year by involving respondents from 6 cities in Bulgaria, 7 cities in Hungary and 9 cities in Romania, measuring 5 indicators: starting a business, dealing with construction permits, getting electricity, registering property and enforcing contracts.
Source of table: World Bank. 2017. Doing Business in the European Union 2017: Bulgaria, Hungary and Romania. Washington, DC: World Bank. License: Creative Commons Attribution CC BY 3.0 IGO.
In this subnational research in Hungary, Ebuild Hungary (the parent company of Ebuild Romania, EECFA’ s Romanian member) was responsible for choosing the respondents from the private sector in Hungary on 2 of the 5 Doing Business indicators: dealing with construction permits and getting electricity. EECFA Research, Buildecon, was responsible for coordinating the project on these 2 indicators in the private sector in Hungary. Buildecon also completes the World Bank’s National Doing Business survey on dealing with construction permits in Hungary every year; a survey regarded as a benchmark for investors.
Here we are going to take a look at the key findings on the dealing with construction permits indicator* in Bulgaria, Hungary and Romania, what regional variations are, how the processes could be improved according to the report, why Germany is so efficient in getting building permits and how Hungary is trying to follow suit.
Key findings on getting construction permits
It has been concluded that overall, it is in Hungary where it is the easiest to obtain a construction permit for a warehouse (18 procedures) compared to Bulgaria (19 procedures) and Romania (26 procedures). However, all countries are lagging behind the EU average of 13 procedures.
In terms of the length of the permitting process, it is in Bulgaria where the process is the quickest: on average 141 days, and it is in Romania where it takes the longest time: 256 days. In Hungary it is 164 days, though it is better than the relative EU average of 169 days. There are 2 EU member states, the Slovak Republic and Cyprus, where the process is very long – 286 days and 507 days, respectively.
As far as costs of the construction permit are concerned, it is in Hungary where it is the cheapest to get a permit (0.5% of the warehouse value) and it is in Romania where it is the most expensive (3.4%). Bulgaria is only slightly cheaper (3.2%). By comparison, the EU average is 2.0%.
All three countries have been found to make building regulations available online and clearly specify the requirements for a building permit. Also, it has been concluded that all three countries have strong building quality control mechanisms and strict qualification requirements for professionals responsible for permitting approvals.
On the residential graphs, the number of dwellings is displayed, and you can choose the countries and the data type. Besides these options, on non-residential graphs you can also choose the indicator type (floor area or number of buildings)
This post of mine appeared first on the EUROCONSTRUCT blog in mid-February and introduced one of our researches in Hungary. This research is about creating such aggregates from the data of individual construction projects which carry new, up-to-date information on the current performance of construction market segments. Since then, however, we have published our first findings for the EECFA member Romania as well. Most of the original text stands for Romania too, but there are some differences so these are included in brackets.
Thanks to The National Bank of England for the fan chart and Cosgrove Hall Films for Jamie and the Magic Torch
The regular fan-chart of The Bank of England’s GDP forecast is perfectly honest about the challenge we all face while putting together historical construction data and forecast. Uncertainty is there, not only on the right, but on the left of the dotted line as well, thanks to revisions. This post is focusing on how uncertainty surrounding the present and some months ahead in the future could be eased with aggregated construction project data. These are Hungarian and Romanian examples.
Hány darab irodaprojekt építése kezdődött meg 2016 1. félévben az országban?
114 darab
De ebből mennyi az új építés, és mekkora a volumene?
33 darab és az összes becsült építési érték 66 milliárd forint.
És mennyi felújítási projekt indult el oktatási épületeken?
80
Milyen értékben?
14.9 milliárd forintnyi, ami 20%-kal kevesebb, mint 2015 1. félévében.
Az összes magas és mélyépítési szegmensre ilyen és ehhez hasonló adatokat állítunk elő egy kutatás keretében, melynek első kézzel fogható összegzése szeptemberben készült el. Az összes az jelenti, hogy a lakásépítést külön, a nem-lakáscélú magasépítést 9, a mélyépítést 8 szegmensbe kategorizálva aggregáljuk az egyedi építési projektadatokat.
Ezt a posztot egyfajta kézikönyvnek szánjuk, hogy bemutassuk milyen adatok kerültek az EBI Építésaktivitási jelentésbe.
A teljes anyag az ibuild.info oldalán olvasható (regisztáció után)
1. A fenti példát folytatva, azon kívül, hogy 114 irodaprojekt kivitelezési munkái indultak el az országban 2016 1. félévében, azt mutajuk még be, hogy ezek várt építési értéke 88 milliárd forint, és hogy ez háromszor annyi mint az előző év hasonló időszakában elindult irodaprojektek építési értéke.
As almost all Q4 figures were published, we have updated our interactive graphs containing quarterly development of permit and completion in the countries we cover. Beside the residential market, now we have put together a similar one about non-residential buildings. The same 3 data types are provided and you can choose from floor area and number of buildings.
Looking at non-residential permits, a substantial growth is experienced on the Balkan. The only exception is Romania, but, for example in Serbia the permitted floor area is almost 100% above its 2014 level. The biggest countries of EECFA region suffer through, and all this is pretty much supporting the scenarios we have foreshadowed in our reports.
The interactive permit – completion graphs are available here:
While putting together the non-residential figures, I became curious about how the levels are comparable to other European countries. Although some exact matchings have been found, the aim was rather to put the country level market sizes into another context (since we usually contrast them in money terms). The basis of the compilation is permitted non-residential floor area.
UK is not mentioned in this list, but it is most probable (based on the value of new non-residential construction) that its market in terms of floor area is bigger than that of France. However, permit data is not available in UK. The same is true to Russia, so completion is shown here instead. And one final note to the table is that permit generally refers to newly created spaces and rarely accounts information about renovation-like activity.
