Hard times ahead 
for contractors

The inevitable slowing of Hungary’s real estate development market bodes no good for local builders, with many headed for bankruptcy. Already subdued by disappointing 2008 results after a major drop in public orders, the industry is pinning its hopes on this year, when a larger number of mostly EU-funded developments are expected to get underwayGergo Racz The latest figures released by Hungary’s Central Statistical Office (KSH) show that the output of the construction industry increased by 4.5 pct year-on-year in working-day adjusted terms in November 2008; however, the first 11 months of 2008 saw a 6.5 pct y-o-y slump in the sector’s overall performance. Considering current prices, Hungary’s construction output totalled HUF 194.5 bln in November and HUF 1,731 bln in the January-November period of 2008.The volume of new orders in the first 11 months of 2008 also showed an