Turnaround in construction: falling labour costs, stagnating skills shortages

Construction labour costs have fallen: the average price per square metre has fallen by 7 per cent, bringing it back below the psychological threshold of ten thousand forints. The shortage of skilled workers remains virtually unchanged: the average waiting time in February was 53 days, according to the latest national survey by Mapei Kft., which was presented in a press release sent to our newspaper.

The shortage of professionals has not changed significantly: while in 2024 the average waiting time for a professional was 52 days, this year it is 53 days. "This waiting time is now optimal and predictable for both professionals and customers."

- said Bela Markovich, CEO of Mapei Kft.. 

According to the CEO, the problem is no longer the length of the lead times, but falling demand and market uncertainty.

Labour shortages increase from East to West

The spatial distribution of skills shortages in 2025 also shows marked differences: the shortest waiting time is in Nógrád county, where on average it takes 40 days to start work, while the longest lead time is in Somogy county, at 54 days. In the capital, the average waiting time is 47 days, which, although close to the national average, is still slightly below. According to Béla Markovich, this is due to the fact that, in addition to the consistently high demand, the supply of professionals is also higher in the capital. The counties of Pest, Komárom-Esztergom and Fejér also have high waiting times of 50-51 days.

Regional data, however, provide a more accurate picture of the national situation, as county averages can easily be distorted by outliers, whereas a regional breakdown based on a larger spatial sample is more balanced and reliable.

The figures show a clear trend: waiting times are getting longer as you move from east to west. While the average waiting time for starting work in Northern Great Plain and Northern Hungary is 42 days, it reaches 54 days in Western Transdanubia. The average waiting time in Southern Great Plain is 48 days, which is lower than in the Western regions but significantly higher than the 42-day average in Northern Great Plain and Northern Hungary. According to Markovich, the relatively high figure is due to the fact that major investments in the region, including the BYD plant in Szeged and the Mercedes expansion in Kecskemét, are absorbing a large share of the workforce.

The evolution of the skills shortage varies significantly by occupational group and by the size of the jobs undertaken. The larger the project, the longer the waiting time: on average 49 days for small repairs, 51 days for small renovations, 58 days for medium projects and 59 days for larger projects. The data show that the time to commit to larger investments has decreased the most compared to the previous year, reflecting the downturn in the housing market and low levels of public and municipal investment.

The longest lead times remain for general contractors, with an average wait of 63 days to start work. They are closely followed by tinsmiths (62 days), building insulators (60 days) and masons (57 days). By contrast, building services engineers are the fastest in 2025, with an average lead time of 42 days. Other workers below the national average (53 days) are carpenters (48 days), electricians and plumbers (both 50 days) and painters (51 days).

Prices fall in Budapest, catch up in the countryside

The average price per square metre of specialised construction work was 9 495 forints in February 2025, down 7 percent from the previous year. The data show that the decrease in the national average price is mainly due to the significant weight and price decrease in Budapest and Central Hungary, while there is a clear catch-up in prices in rural regions.

The highest average price is found in Northern Hungary, where 10 321 HUF/m² is the typical labour price. This is followed by Central Hungary (10 260 HUF) and Budapest (10 166 HUF). Below the national average are the Northern Great Plain (9 495 HUF) and the Southern Great Plain (9 307 HUF). Among the regions of Transdanubia, the average price per square metre is 9 835 HUF in South Transdanubia, 9 802 HUF in West Transdanubia and 9 728 HUF in Central Transdanubia.

64 percent of the professionals surveyed plan to raise prices in 2025, with an average increase of 14 percent. "Economic pressure is the main reason behind the change in construction prices, not the aim to increase margins," said Béla Markovich.

There are also reasons for price increases and price stability

The main reasons for the increase in prices are the persistent inflation (651T3167k), the increase in fuel prices (221T3167k), the increase in material costs (171T3167k) and the increase in business operating expenditure (161T3167k). Increases in wages (121T316167k) also contribute to cost pressures. By contrast, the adjustment to market prices (41T316167T) and the replacement of past price increases (31T316167T) have only a minor impact on pricing.

On the other hand, 36% of professionals do not plan to raise prices this year, with 80% citing a lack of solvent demand and price sensitivity among customers. 58 percent of respondents perceive increased competition and an unpredictable economic environment, which also has a significant impact on their pricing decisions.

Given subdued demand and market uncertainty, many businesses prefer to focus on price stability and avoid the risk of price increases, fearing that in the current highly price-sensitive market, they could lose orders by increasing prices. "Less work, more competition. Stability has become more important than price increases,"said Bela Markovich, CEO of Mapei Kft..

Construction sentiment at a turning point

Although many people remain pessimistic about the construction sector, the perception of professionals is improving. According to the survey, 47% of construction professionals feel that the sector is heading in the wrong direction - still a high proportion, but 11 percentage points lower than a year earlier. At the same time, 24 percent already perceive an improvement, an increase of 8 percentage points. And 29 percent of respondents say the situation has not changed, up 3 points from a year ago.

"Although the sector is still struggling, there is a glimmer of light at the end of the tunnel. The fact that more and more people are noticing an improvement shows that market players have adapted to the circumstances and cautious optimism is returning", says Béla Markovich. According to the CEO, stabilising commodity prices, government incentives and a slow recovery in demand are all contributing to a more positive perception among professionals.

Research methodology

The research aims to understand the extent of the skills shortage in Hungary. The data was collected through a self-completed online questionnaire. Data collection date: February 2025. Sample size: 1800 active construction professionals. Analysis was performed using statistical methods. The survey is not representative. The survey is similar to a similar survey conducted in the same period of 2024, interviewing professionals. The target group and the methodology of the survey were the same as in 2024, so that a comparison of the results of the two years gives a reliable picture.