Renovation is still in focus

The short-term annual home improvement and modernisation plans of the residents did not change considerably in February 2020, compared to the previous quarter. Although, a slight decreasing can be experienced, the trends are still positive.  Based on the intentions of the residents, renovation works can be expected on 11 percent of the Hungarian housing stock during the next year, and on approximately 20 percent in the following three years. Most of the people are preparing for painting, which can affect every seventh home in the following three years. However, renovations increasing energy efficiency are also popular, which can affect almost every tenth home.

Home improvement and modernisation plans of the residents during the next year, 2007 – 2020 (1000 households)

Source: GKI surveys

GKI conducts quarterly surveys in order to map the residents’ home improvement and modernisation plans, intentions and prospects. Surveys have been conducted with the support of Masterplast since January 2020. The scope of the latest representative survey contains 1000 people based on sex, age, place of living and qualification.

According to the data of the Hungarian Central Statistical Office, about two-thirds of the housing stock need renovating. A big number of the residents are starting to realise the tasks and actions related to climate change and the harsher rules are generating construction and renovation tasks. The demand for sustainable and energy-efficient homes is increasing. All of these are helped by accessible state subsidies and favourable conditions of loans – in this latter area, though, there can be some changes in the near future.

The short-term expectations of residents concerning home improvement and modernisation in the first quarter of 2020 basically correspond with that of the previous quarter. The proportion of steady renovators and modernisers slightly decreased, but the proportion of those who are likely to be preparing for home improvement and modernisation slightly increased. Although on an annual basis a slight slowdown can be felt, looking back on the last decade the current expectations are seen as positive and do not differ substantially from the pre-crisis prospects.

The frequency of mentioning the plans for renovation and modernisation for the next three years:

□  Painting, wallpapering: 14,3%

□  Replacing doors and windows: 4,6%

□  Bathroom renovation: 4,2%

□  Insulation works: 2,8%

□  Modernisation of heating systems: 2,1%

□  Flooring renovation: 1,9%

□  Other renovations: 1,2%

□  Facade renovation: 1,1%

□  Installation or replacement of ventilation system and air conditioning: 1,0%

□  Installation of solar collectors and solar panels: 0,9%

During the next year about 11 percent of Hungarian households are planning to spend a great amount of money on their homes, whereas in the next three years about 20 percent of Hungarian households are planning to do so. If these plans are realised, renovations will affect about 750-800 homes by the end of 2022.  Renovation plans in Central Hungary are slightly below the average (affecting 15 percent of households), while in the rural areas plans are slightly above the average (20 percent in the western part of the country and 23 percent in the eastern part of the country). In Budapest 16 percent, in county seats 26 percent, in other cities 18 percent and in villages 20 percent of those polled are preparing for renovation.  56 percent of those people who are planning renovation and modernisation would do or would get only one task done, 28 percent would do two tasks and only 16 percent would do three or more tasks. These numbers shed light on the financing problems. The frequency of renovation plans and the financial background are related. 12 percent of households belonging to the lower three deciles and 30 percent of households belonging to the upper three deciles are planning renovations.

The most popular form of renovation is painting, which is likely to be done in every seventh home in the next three years. Besides this, over tenth of those polled are planning investments improving energy-sufficiency (replacing doors and windows, insulation works, modernisation of heating systems), too. The low frequency of mentioning the expected installation of solar collectors and solar panels is conspicuous. This type of work has not become very successful despite the available subsidies, however, a new payment scheme may improve this situation.