Q1 2022: new record in Hungarian construction

Press Release on EBI Construction Activity Report Q1 2022

The Hungarian construction industry started off this year with an exceptionally high Activity Start indicator: nearly HUF 1,300 billion worth construction works started in Q1 2022. The Activity Start of EBI Construction Activity Report in the first quarter is a new record (construction works have never started in such a high value in one quarter) and exceeded the level of Q2 2021 (the highest so far) by almost 37%. Yet, this spike is mainly thanks to the launch of two major projects: 1) the Soroksár-Kelebia section of the Budapest-Belgrade railway corridor and 2) the road section between Kecskemét and Szentkirály on M44.

EBI Construction Activity Report Hungary analyses the construction industry on a quarterly basis, including the volume of newly started construction works and the value of projects completed in each quarter in aggregate and by segment as well. It is prepared by Buildecon, Eltinga (creation of indicators and development of algorithms for aggregation) and iBuild (project research and project database). The EBI Construction Activity Report Q1 2022 has been released and can be purchased at ebi@ibuild.info.

Stagnant building construction

The value of started building construction projects was slightly more than HUF 430 billion in the first 3 months of 2022; a good start to the year. The Activity Start of EBI Construction Activity Report was a bit below the value of the same period of the previous year but compared to the last two quarters of 2021, there has been no major change in the Activity Start of building construction. And the first 3 months of 2022 were considerably better than the period between April and December 2020.

Within building construction, the Activity Start of residential construction was modest: the value of started construction works stayed below HUF 90 billion. The Activity Start indicator of non-residential buildings was almost HUF 350 billion in Q1 2022, lower than the very strong first 2 quarters of 2021, but almost the same as the values of Q3 and Q4 2021.

The biggest started building projects in Q1 2022 included Kovács Katalin National Kayak-Canoe Sports Academy in Sukoró, eMAG logistics centre in Dunaharaszti, and ActiCity Event Center in Veszprém. In Budapest, the construction of BEM Center office building and Kimpton Hotel (District 2), as well as Phase 2 of Corvin 7 office building (District 8) entered construction phase.

Big numbers in civil engineering

Construction start on the Budapest-Belgrade railway line between Kelebia and Soroksár, and the section of M44 between Kecskemét and Szentkirály brought an outstanding Activity Start indicator for civil engineering. The total value of launched projects went up to an unprecedented HUF 850 billion between January and March 2022; twice the previous record value of Q1 2018. The Activity Start of civil engineering in the first 3 months of 2022 exceeded the full annual value of both 2020 and 2021.

The total value of road and railway construction works within civil engineering was almost HUF 800 billion thanks to these two large-scale projects. It is indeed the highest value of the last decade. But non-road and non-railway civil engineering projects, similarly to the last two quarters of 2021, started in a low value again.

In addition to these two big-volume projects, key civil engineering projects include the Phase 2 of main road 33 (Debrecen).

Continue reading Q1 2022: new record in Hungarian construction

2021 saw an expanding value of started construction works in Hungary

Press Release on EBI Construction Activity Report Q4 2021

2021 as a whole saw expansion in the Hungarian construction industry. Compared to 2020 and 2019, the total value of started construction works also rose. Last year, the Activity Start indicator of EBI Construction Activity Report reached a total of more than HUF 2,500 billion, an increase of almost 18% against 2020 and of more than 6% against 2019. It is true, however, that last year’s growth was mainly due to the outstanding numbers in Q2 as Q4 brought a particularly low Activity Start. It was in 2016 last when there were 3 months with lower value of construction works started.

Photo by Hajnalka Hurta

EBI Construction Activity Report Hungary analyses the construction industry on a quarterly basis, including the volume of newly started construction works and the value of projects completed in each quarter in aggregate and by segment as well. Prepared by Buildecon, Eltinga (creation of indicators and development of algorithms for aggregation) and iBuild (project research and project database). The EBI Construction Activity Report Q4 2021 has been released and can be purchased at ebi@ibuild.info.

Building construction: drop at end 2021, but still a record-setter

Q4 2021 registered a weaker Activity Start in building construction works, mainly owing to the loss of momentum in non-residential building works. Overall, however, the lower numbers of H2 were offset by the higher values of H1, particularly in Q2. Thus, thanks to a successful first half of the year, building construction works have never started at such a high value as in 2021. As per the latest EBI Construction Activity Report, the value of construction works started last year reached more than HUF 1,800 billion with the growth over 2020 being close to 30%, and the growth over 2019 being more than 20%.

The Activity Start of multi-unit housing constructions saw an increase in Q3 and Q4 2021. In the full year of 2021, despite a weak Q4, the value of non-residential construction works set a record; such a high value of construction works has not yet started in the subsector. The Activity Start indicator of EBI Construction Activity Report amounted to more than HUF 1,500 billion in total, an increase of about 27% over both 2020 and 2019.

In Q4 2021, the biggest building construction projects entering construction phase comprised Alba Arena sports hall (Székesfehérvár), Chervon Auto automotive metal parts plant (Miskolc), Jedlik Ányos Grammar School (District 21, Budapest) and the Innovative Technical School and Grammar School (Biatorbágy).

Civil engineering: not the top performer of 2021

Since 2016 civil engineering works had not commenced at such a low value as they did in 2021. The Activity Start of EBI Construction Activity Report was slightly more than HUF 700 billion, meaning a further decline of 5% over the weak year of 2020, and a falloff of more than 18% over 2019. The Activity Start of road and railway construction works showed a 6% rise compared to 2020 due to the low base; but compared to 2019 the drop was close to 15%. In other than road and railway civil engineering works, the decline was almost 14% in 2021 against 2020, while the value of started construction works fell by 22% against 2019.

Among the biggest civil engineering projects that began in Q4 2021 were the railway section between Szeged-Transfer Station and Röszke, the Halimba-Szőc Solar Park, and the construction of the irrigation plant and irrigation system in Mezőhegyes.

Dropping share of Central Hungary

Q4 2021 saw a further drop in the share of Central Hungary in terms of started construction works. For the whole year, 34% of the value of construction works started in the region; lower than in 2014-2020 (38%).

The share of Eastern Hungary in Activity Start also lagged behind that of previous years, while that of Western Hungary went up to 35% from the previous 28%, according to the latest EBI Construction Activity Report.

Last year, after Budapest, the highest value of construction works started in Central Transdanubia.

Multi-unit housing construction getting off

Thanks to the favourable VAT rate, there was an increase in the value of started multi-unit construction works in 2021. A bit more than HUF 300 billion worth of construction works commenced in the segment, an increase of more than 40% over 2020 in the Activity Start of EBI Construction Activity Report. But the numbers were almost 4% lower than in 2019. Compared to 2018 and 2017, the difference was even more striking: more than 30%. The growth that started in Q3 and Q4 2021 is set to continue in 2022 with developers earlier this year announcing the launch of several major projects, as well as higher building permit numbers last year.

The biggest projects launched in Q4 2021 included several multi-unit housing projects in Budapest such as Phase I of New Palace, Ferdinand Garden, Balance Garden, Metrodom River building B and Westside Garden.

Even though the total value of projects completed in 2021 did not reach the 2020 level, it remained high. HUF 300 billion worth of multi-unit homes were completed in 2021, which, after 2020, was the second highest Activity Completion registered ever. According to preliminary data, 2022 is expected to set a record for completion again if projects planned for this year do reach completion.

Various parts of Hungary did not have the same share last year in the increase of multi-unit housing construction. A Bigger Activity Start was registered in Budapest, which dropped least in 2020, as well as Pest County and the Southern Great Plain region (starting from a low base due to the large drop). Overall, Central Hungary had a much higher share of the value of started multi-unit home construction works in 2021, more than 70%, compared to the average of 60% in previous years. The share of Eastern and Western Hungary in 2021 lagged behind their share in the period between 2014 and 2020.

Northern Great Plain

Compared to pre-2017, construction works in the Northern Great Plain region in recent years have been starting at a much higher value. 2017 and 2018 saw an exceptionally high construction Activity Start, but it also stayed high in 2019 and 2020. Although in 2021 started construction works had a lower value than in 2020, the Activity Start indicator still surpassed the 2019 level, and was much higher than pre-2017.

Even though the Activity Start of multi-unit housing construction somewhat grew in the region in 2021 over 2020, it still lags far behind the figures of 2016-2019; for instance, by more than 30% over 2019. Between 2016 and 2019, works began on larger projects in the region such as Phases 2 and 4 of Paris Courtyard (Párizsi udvar) or Ispotály residential park (both in Debrecen) and János-hegy residential park (in Nyíregyháza). Despite the low numbers in 2021, larger multi-unit residential projects were also launched in the region like the Debrecen project (in Hajdúböszörmény) or Phase 1 of Platanus residential park (in Debrecen).

Based on data available for the first 9 months of 2021, 2022 might see a further major expansion in the Activity Start of the region. The number of permitted homes hiked between January and September last year and 90% more permits were issued in the region than in the same period of 2020. For comparison, the country-wide growth was only 30% between the two periods.

The value of non-residential construction works launched in the Northern Great Plain region increased greatly by 2021, and even exceeded the highest value of 2018. Thus, overall, the Activity Start of building construction reached a record high in the region in 2021. For example, construction started on the East-West Gate intermodal logistics centre (Fényeslitke), on Phase 3 of Lego injection moulding plant and on Phase 3 of the packaging plant and warehouse (both in Nyíregyháza). Last year also saw the start of construction works on Semcorp foil production plant (Debrecen) and on Tiszakavics Hotel (Szolnok). The growth is striking despite that the construction of the BMW plant did not eventually start last year. And Activity Strat is expected to remain high this year as rumour has it that the first building works at the BMW plant (central office building and training centre) could begin in 2022.

In recent years works on road M4 and projects related to the BMW project fuelled the Activity Start of civil engineering in the region (for the latter, for example, Phases I and II of the North-West Economic Zone infrastructure development and Phase 1 of the Debrecen-Füzesabony railway section started). But last year the value of started civil engineering works sank massively in the Northern Great Plain and it had not been so low since 2015. Biggest projects in 2021 included the civil engineering works of the above-mentioned East-West Gate intermodal logistics centre and the City Stadium project in Nyíregyháza.

Original article in Hungarian: Tünde Tancsics, ELTINGA

English version: Eszter Falucskai, BUILDECON

Press Release on EBI Construction Activity Report Hungary Q3 2021

After a significant expansion in Q2, the value of started construction works in the Hungarian construction industry marked a major drop between July and September. Yet overall, the Activity Start indicator remained high for Q3 due to the exceptionally good Q2.

Based on the projects listed in iBuild construction project information and company database, a total of more than HUF 2 billion worth of construction works started in the sector. The Activity Start indicator of EBI Construction Activity Report for the first 9 months of the year exceeded not only 2020, but also 2019, the former by 24% and the latter by 4%.

EBI Construction Activity Report Hungary analyses the construction industry on a quarterly basis, including the volume of newly started construction works, and the value of projects completed in each quarter in aggregate and by segment as well. Prepared by Buildecon, Eltinga (creation of indicators and development of algorithms for aggregation) and iBuild (project research and project database), it can be purchased at ebi@ibuild.info.

Smaller-scale building construction activity in July-September 2021

Similarly to the construction industry as a whole, building construction registered a weaker Q3. The Activity Start indicator of EBI Construction Activity Report was below the level of the first two quarters, but construction works in the sector started in a higher value than in the corresponding period of 2020. Thanks to the successful H1, in the first 9 months of the year the value of the Activity Start indicator was close to HUF 1,500 billion, marking a 24% increase like-for-like and also significantly higher than in the same period of previous years.

Multi-unit and non-residential also recorded a feeble Q3. However, in the latter, the value of started construction works in January-September exceeded the one in 2020 (by 31%) and the one in 2019 (by 36%) thanks to the high Activity Start of Q2 2021.

In Q3 2021 projects entering construction phase included the renovation of the new North Buda Unified Hospitals. In addition to the construction of several office buildings and industrial warehouses which will be described in detail later, the construction of Hotel Aria Residences and of the Szekszárd Knowledge Center also started.

In the multi-unit housing segment, after the weak Q2, Q3 saw an even lower Activity Start. The value of launched construction works in the first 9 months was only 14% more than in the same period of the already poor 2020, and well below the level of previous years.

Frailing civil engineering in Q3 2021

Civil engineering also posted a reduction in Q3 2021. The Q3 2021 EBI Construction Activity Report has found that following an outstanding Q2, a rather low value of construction works started in the subsector. This was also true to road, railway, as well as non-road and non-railway segments. In the first 9 months, the Activity Start indicator of Civil Engineering exceeded the like-for-like indicator of 2020 (+15%), but it was much lower than in previous years.

The biggest launched civil engineering projects were the construction of the Sajószentpéter-Berente bypass on main road 260 and the works of the Gesztely-Szerencs stretch on main road 37.

Started construction works more evenly balanced regionally

In Q3 2021, the biggest share of construction works started in the eastern regions, but overall, in the first 9 months of the year the western regions had the largest proportion of the total value of started construction works which exceeded the value of previous years.

On the whole, East Hungary registered the fewest started construction works in January-September, in spite of the growth in Q3.

Multi-unit housing construction works slow to kick off

Despite the drop of VAT rate on new homes down to 5% from 1 January 2021 (from 27% in 2020), there is no visible growth in multi-unit housing construction. In Q2 fewer multi-unit construction projects started than in Q1 and Q3 also saw a further decline. Yet due to the better Q1, the value of Activity Start of EBI Construction Activity Report for multi-unit housing construction in the first 9 months of 2021 was still 14% higher than in the same period of 2020.

Despite the VAT reduction, multi-unit home constructions are slow to start. According to the housing permit statistics of the CSO, ‘simple declarations to build a home’ played the main role in the growing number of permits this year. This may be due to the fact that since last fall’s announcement to lower the VAT, developers haven’t had the time to prepare for large-scale projects and permits have not yet been obtained (which is the prerequisite to start construction works). But overall, as a result of the VAT reduction, we still expect the Activity Start of multi-unit housing construction to pick up in the future, especially because the recently launched ‘green loan’ might also boost demand for new homes.

Between July and September the value of completed multi-unit projects was roughly at the level of Q2, falling short of previous expectations due to delays. In the first 9 months of the year, a total of HUF 208 billion worth of multi-unit housing projects reached completion.

Like in the first half of the year, most multi-unit construction works started in Central Hungary in the first 9 months. Although the rest of Hungary had a proportionately higher Activity Start in Q3, they still lagged behind their previous years’ share. Between January and September only 10% of construction projects started in the eastern regions and 18% of them in the western regions against the 72% share of Central Hungary.

Office projects in 2021

Compared to the sharp decline in 2020, office projects have accelerated in 2021. The Activity Start of EBI Construction Activity Report for the first 9 months of the year surpassed the total annual value of the record year of 2018.

The reconstruction works of the former Joseph Archduke’s Palace, the former Red Cross Headquarters and the buildings of the Ministry of Finance and the Hungarian National Bank have started. Also, the construction works of phase 4 of Madarász Office Park, phase 1 of BakerStreet Office Building, phase 1 of Dürer Park Office Building and Richter Gedeon Headquarters have been launched.

This year there have been fewer completions. As per iBuild construction project information and company database, office construction works were completed on less than HUF 90 billion. For example, BudaPart City office building reached completion this  year and in the last quarter we might see further office building completions such as Aréna Business Campus B, Green Court Offices and OTP M12. This could greatly increase the value of this year’s Activity Completion indicator.

Warehouse projects in 2021

The construction of industrial buildings and warehouses has also been showing a strong upswing this year. The value of started works, after 2020, is hitting another record in 2021. The value of construction works started in the first 9 months of the year in the segment has already significantly exceeded last year’s total Activity Start.

This year has seen the construction start of SK Innovation battery plant in Iváncsa, Semcorp separator film production plant in Debrecen, Phase 2 of Mercedes-Benz K1 press plant in Kecskemét and East-West Gate intermodal logistics center in Fényeslitke.

Several completions have already taken place and more are expected in the last quarter, possibly making 2021 a record year for completions as well. For example, this year has seen the completion of phase 2 of SK Innovation battery factory in Komárom and the M0-M31 warehouse in Nagytarcsa. Nestlé Purina pet food plant in Bük and LIDL’s logistics center in Ecser are also set to be completed yet this year.

Lowest figures in started construction projects in Hungary in the past 3 years

The last quarter of 2019 saw another significant decline in launched construction projects in Hungary, amounting to only HUF 424bln worth started total construction works – as per the latest edition of EBI Construction Activity Report. Works started in the sector in a much lower value for the 2019 year as a whole as well. The drop in 2019 was 21% over 2018; and even compared to 2017, the difference was -11%. In 2019 the Activity Start Indicator of the Report totalled less than HUF 2200bln, compared to the almost HUF 2790bln a year earlier.

Building construction activity fell in Q4 2019

The Report has also found that in Q4 2019 building construction registered a lower value of started works than in the previous quarter, amounting to HUF 311bln. Overall, in 2019, Activity Start for building construction accounted for HUF 1364bln – significantly less than in 2018 and marking a decrease of 15%. However, calculated based on the ibuild.info project database, even the value in 2017 surpassed the 2019 one.

Weakening non-residential and multi-unit housing construction figures both were to blame for the slump in building construction. Multi-unit housing projects had also been seeing a decline in the value of Activity Start indicator over the past quarters, and the trend continued in Q4 2019 as well. Non-residential construction projects posted a much more modest drop.

Launched building construction projects in Q4 2019 comprise several hotels and office buildings, the construction of the Szeged Handball Arena, Phase I of Nagykanizsa multifunctional sports and event hall, upgrades of M3 Business Center buildings A and B, and renovation works of Hungexpo.

Published quarterly, the EBI Construction Activity Report creates aggregates from project data for 18 segments by object type (multi-unit residential, 9 non-residential segments and 8 civil engineering segments). It is prepared by Buildecon, Eltinga (creation of indicators and development of algorithms for aggregation) and ibuild.info (project research and project database). Full publications can be purchased at ebi@ibuild.info.

The fourth quarter of 2019 was very poor in civil engineering

Even though the period between April and September 2019 saw the start of civil engineering works in a massive value, Q4 2019 recorded a huge drop in numbers. Activity Start amounted to only HUF 113bln, the lowest value since Q4 2016 and only one-third of the value in Q3 2019. As a result, civil engineering closed the year with a massive decline, posting 30% fewer started construction projects in 2019 than in 2018 (a 22% drop against 2017). However, the 2019 Activity Start (HUF 835bln) is not considered to be extremely low in the segment. Rather, the years of 2017 and 2018 are considered to be extremely high.

In 2019, within civil engineering, mainly road and railway construction projects started in a much lower number than in 2017 and 2018, accounting for HUF 432bln. This was mainly due to the major decline in the Activity Start of railway construction projects, with only HUF 48bln of projects entering construction phase. The HUF 384bln worth Activity Start in road construction showed a much smaller difference compared to 2017-2018, and it surpassed the values in preceding years.

Started civil engineering projects in Q4 2019 are scarce, but include the construction start of the South Railway Bridge on the Danube in November 2019, for example.

Central Hungary was in the lead again in Q4 2019

Like Q3 2019, Q4 2019 also saw the start of fewer projects than in previous years in Eastern Hungary, offsetting the region’s high share in H1 2019. Thus, in 2019, 36% of the value of started construction works concentrated in Eastern Hungary.

Central Hungary was the other way around: while in H1 2019 its relative share in Activity Start was lower than in previous years, in H2 2019 it significantly exceeded it. The Report has found that between October and December 2019 more than half of the value of new construction works concentrated in Central Hungary.

There is a clear downturn in multi-unit housing construction

From January 1 this year, resetting the VAT rate from the previous 5% back to 27% brought a major change in the Hungarian multi-unit housing market. As of this year, units in projects having obtained a building permit after November 1, 2018 can only be sold at the higher VAT (above net prices). Last year, the approaching end-of-December deadline increasingly had a knock-on effect on the value of started construction works. The value of the EBI Activity Start Indicator for multi-unit housing construction amounted to only HUF 49bln in Q4 2019. For comparison, in all quarters of 2018 the value of projects started for three months exceeded HUF 100bln. In 2019, as a result of the downturn, construction works started in a total of HUF 263bln against the more than HUF 400bln in the previous two years. Last year, the EBI Activity Start Indicator for multi-unit housing construction fell 39% nationwide.

Despite the rosy figures of Q3 2019, only 44% of the investment value was concentrated in Budapest, so the capital city’s share in multi-unit housing construction dipped compared to previous years. It is not surprising, though, as in 2019 the shrinkage in construction starts was 51% y-o-y, according to the EBI Construction Activity Report. Central Hungary had a share of 52% of the total value of newly built multi-unit buildings, indicating a huge drop against previous years.

In 2019, the EBI Activity Completion Indicator Continue reading Lowest figures in started construction projects in Hungary in the past 3 years

Építésaktivitás vizualizálva – Magyarország

A posztot és a tableau viz-t összeállította: Gáspár János, Buildecon

EBI-dataviz-teljes-építési-piac

Korábban írtunk már ezen a blogon is az EBI Építésaktivitási Jelentésről, amikor bemutattuk ezen kutatásunk első eredményeit. A kutatás lényege, hogy egyedi építési projektek adataiból olyan aggregátumokat alakítsunk ki amelyek új, naprakész információt hordoznak az építési piac szegmenseinek aktuális alakulásáról. Most egy következő szintre léptünk.

Röviden a legfontosabbak:

  • A vizualizációval a három mutatószámunkat, (1) Aktivitás-Kezdés, (2) Teljesítmény, (3) Aktivitás-Befejezés, összefüggéseiben mutatjuk meg.
  • Az Aktivitás-Kezdés, hasonlóan az építési engedélyhez, un. előidejű mutatószám, azaz rövidtávú előrejelző képessége van. Az Aktivitás-Kezdés alakulása meghatározza, hogyan fog a Teljesítmény és az Aktivitás-Befejezés alakulni.
  • Az építési piac minden szegmensére látható, hogy milyen értékben indultak el kivitelezési munkák, hogy ez milyen Teljesítmény és milyen befejezési értéket eredményez. A legürdülő menük segítségével több részpiac, illetve több szegmens egyszerre is vizsgálható.
  • Érdemes teljes képernyős módban nézni, a jobb alsó sarokban lévő  ikonra kattintva tud erre a nézetre váltani.
  • 2018 3. negyedévről készült jelentés mögötti adatokat jelenítettük meg. Az azóta eltelt negyedévekről folyamatosan frissítettük a vizualizációt. Ha érdekli a legfrissebb, 2019 1. negyedéve, vagy bármilyen kérdése van, kérem írjon nekünk: ebi@ibuild.info.
  • Az alapadatok, vagyis az egyedi építési projektek forrása az ibuild.info, a mutatókat és az aggregálás módszertanát az ELTINGA és a Buildecon közösen dolgozta ki.

Dealing with construction permits in Bulgaria, Hungary, Romania

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 other hand, in comparison with the EU, the report has found that in all three countries the construction permit procedure is much more burdensome than in most other EU member states. Continue reading Dealing with construction permits in Bulgaria, Hungary, Romania