The home renovation program excites the population’s imagination

The residents’ short term (concerning the following year) renovation and modernization plans strengthened in the last quarter. The expectations reached a 14-year peak. The announced state incentives have had a positive effect, many savored the thought of the free millions. In the next year, according to the intention of the population, almost 14% of the Hungarian housing stock can carry out renovation and modernization works, i.e. 570,000 homes can be renewed – reveals the joint research of GKI and Masterplast.

Intentions of the population to renovate or modernize their dwellings in the next one year, 2007-2020

(thousand households)

Source: GKI surveys

GKI organizes a survey in every quarter in order to assess the plans, purposes and prospects of the companies dealing with real estates. Since January 2020, the survey is carried out with the assistance of Masterplast Nyrt. The sample of the population surveyed 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 fourth quarter of 2020 (i.e. for the next one year) improved significantly on both a quarterly and annual basis. These expectations have not only reached their peak this year, but also recall the pre-crisis times began in 2008. The impact of the epidemic on the home renovation market was not negative at all, as it turns out from the survey data of the second and third quarters. The government representatives outlined the new housing support package to be introduced in 2021 with several announcements at the end of October. The Home Renovation Program should be highlighted, which provides a maximum of HUF 3-million-support per family. The amount is also sufficient to finance a more serious, comprehensive renovation-modernization work – thereof provide meaningful help to the households concerned. However, the conditions for participation are not clarified yet, and further explanations are expected. Thus also enabled the population to consider as a real option. Nevertheless, the positive impact of this government incentive can be clearly felt in the evolution of the survey results. In the next one year, about 14% of Hungarian households plan to spend more on their housing (are certain or likely). If all these plans are realized, major and minor works could be carried out on around 570,000 flats within a year. This is 80,000 more than measured in the third quarter.

Renovation and modernization plans for the following year, 4^th quarter of 2020

(frequency of reference, percent)

Source: GKI surveys

The strongest intention to renovate is still among the residents of detached houses – almost 18% of these households may be affected. On the other hand, the smallest desire to modernize is among those living in panel condominiums – slightly less than 10% are willing to do so. The plans of the residents living in brick-built condominiums are somewhere between the abovementioned two (12%).

In Budapest, 12% of the surveyed households, 13 and 14% in county seats and other cities, and 18% in villages are preparing for renovation. In the latter case, the family housing allowance (CSOK), which is extended for the villages, may be an additional incentive as well. Among the regions of Hungary, the highest activity can be felt in Western Transdanubia (16% of households are preparing for some kind of renovation), however in the Northern Hungary and Northern Great Plain regions, renovation and modernization activities exceeding the national average are expected (15-15%).