The population’s short-term (annual) housing renovation and modernization plans increased significantly in August 2020 compared to a quarter earlier, according to the results of the survey conducted by GKI and Masterplast in August 2020. This means a positive development even on an annual basis. According to the survey, the negative impact of the coronavirus on housing renovations is not detectable at all. In the next year, based on the intentions of the population, renovation and modernization works can be carried out on almost 13% of the Hungarian housing stocks.
Intentions of the population to renovate and modernize their dwellings in the next one year, 2007-2020 (thousand households)
Source: GKI surveys
GKI carries out a survey in every three months to monitor the population’s housing renovation and modernization plans, intentions and prospects. The survey is conducted by the support of Masterplast Nyrt from January 2020. The sample observed in the present survey is representative of 1,000 people by gender, age, place of residence, and education.
The population’s short-term expectations for housing renovations and upgrades in the third quarter of 2020 (i.e. for the next one year) also improved on a quarterly and annual basis. In other words, compared to the second quarter of this year and the third quarter of last year, slightly more people are considering renovating their homes. The epidemic caused by the coronavirus and its consequences have therefore had no negative impact on the housing renovation market at all. In the next year, almost 13% of Hungarian households plan to spend more on their housing (for sure or probably). If these plans are implemented, they will be able to carry out more or less work on almost 500,000 flats within a year.
Renovation and modernization actions planned for the next year, 2020. 3rd quarter
(frequency of mention, percentage):
Definitely | Probably | |
| Detached houses | 4,1 | 12,1 |
| Panel flats | 1,0 | 6,8 |
| Brick condominiums | 2,5 | 9,2 |
| Total | 3,0 | 9,7 |
Source: GKI surveys
The strongest intention to renovate is among residents of single-family homes, with about 16% of these households (i.e. almost one in six homes) affected. In contrast, the slightest desire to modernize is among those living in panel flats – barely 8% of them are willing to do so. The plans for residents in brick-built condominiums are somewhere in between.
Renovation and modernization actions planned for the next year, 2020. 3rd quarter
(frequency of mention, percentage):
Definitely | Probably | |
| Central Hungary | 3,3 | 10,3 |
| Central Transdanubia | 5,0 | 9,4 |
| Western Transdanubia | 3,0 | 12,5 |
| Southern Transdanubia | 2,9 | 8,6 |
| Northern Hungary | 2,8 | 8,7 |
| Northern Great Plain | 3,3 | 8,8 |
| Southern Great Plain | 5,0 | 9,2 |
| Total | 3,0 | 9,7 |
Source: GKI surveys
In Budapest, 11% of the households participating in the survey, 13-13% in county seats and other cities, and 16% in villages are preparing for renovation. In the latter case, it is believed that the rules of family allocation applied for villages in force since the beginning of the year provide some incentive. Among the regions of Hungary, renovation and modernization activities exceeding the national average are expected in Central Hungary, Central and Western Transdanubia and the Southern Great Plain.
The most significant activity is likely in households where the breadwinner of the household is between 30 and 49 years old. Renovation plans are much rarer among younger and elder people.
Masterplast Nyrt.
Founded in 1997, the Masterplast group is one of the leading building material producer and distributor companies in the Central Eastern European region. The company group owns subsidiaries in 10 countries, and sells products in a further 30 countries. The company is registered in the premium category on the Budapest Stock Exchange, and had revenue of 201,8 million euros in 2022.