Hungary introduces stricter environmental rules for priority construction projects

Hungary is implementing legislative changes to the 2023 Act on Architecture, which will allow authorities to suspend or deny building permits for priority projects in cases of environmental or nature protection violations. Under the new amendment, if a violation is identified, the construction process may be halted for at least six months following the finalization of the decision regarding the violation. This measure specifically impacts certain investments related to the Otthon Start Program.

In a separate development regarding housing and energy policy, the Ministry of Transport and Construction is shifting the focus of energy renovation grants. Instead of prioritizing single-family homes, future funding will target apartment buildings and multi-story structures to encourage more substantial technical upgrades. Additionally, a new basic concept for a rental housing program is expected to be released shortly.

The construction sector in Hungary is currently facing significant challenges, including a decline in permanent employment and rising debt levels. Industry representatives have noted that the sector is approaching a critical low point.