Condominium grant schemes, a national knowledge centre, and reconstruction in Ukraine – forward-looking initiatives discussed at the ÉVOSZ board meeting

Energy efficiency grant schemes are being directed towards blocks of flats

Samu Szemerey, State Secretary responsible for architectural and building construction projects, emphasised in his presentation that one of the main reasons for the sector’s current slump is its long-standing, unhealthy dependence on government contracts.

Following the suspension of investment projects and planning preparations in 2022, the market must shift towards fair competition, quality considerations and sustainability. The Ministry’s aim is to promote integrated urban development, the regeneration of brownfield sites and the widespread adoption of masterplan-style planning. Particular emphasis is placed on programmes for the construction of rental housing and student accommodation, where a long-term, stable structure with lower returns is required instead of previous development models.

In the field of residential and public space refurbishments, the State Secretariat intends to move away from the previous „low-end” approach, which was limited to insulation and window replacement; Instead, it aims to carry out comprehensive, area-focused renovations that enhance value both functionally and architecturally, with a particular focus on the block of flats stock. In terms of regulation, work is currently underway to reinstate the Rules on State Investments (ÁBTV), the Public Procurement Rules (Kbt.) and ÉMI, as well as to integrate the requirements of BIM more realistically into planning, budgeting and operations.

In response to questions, he emphasised that public investment is not expected to get properly underway until early 2028 at the earliest, and that, during the interim period until then, high-quality planning and the strengthening of the TSZSZ are essential.

As mentioned, their stated intention is to retain the 5% VAT rate for residential property construction, but the details of this are still being finalised.

The efficiency of SMEs is only 45% of that of large enterprises

Zsuzsanna Naderi , State Secretary for Vocational Training and Adult Learning, pointed out that the most serious constraint facing the sector is the structural shortage of labour and efficiency. Domestic productivity stands at 64% of the EU average, whilst domestic SMEs achieve only 45% of the level seen in large enterprises. As nearly one-third of the adult population struggles with a lack of functional skills (PIAAC survey), vocational training must be preceded by substantial development of basic skills.

Due to demographic decline, the replenishment of the workforce cannot be based solely on new entrants; companies must invest a portion of their profits in the training of their existing staff.

A programme with a budget of around 7 billion forints is set to establish a national knowledge centre and an associated network of sector-specific training centres, which will provide the educational framework for state-of-the-art, digitalised and green technologies.

The time has come for companies to prepare for the reconstruction of Ukraine

Sándor Fegyir, Ukraine’s Ambassador to Hungary, has invited Hungarian companies to take part in reconstruction and defence projects.

He emphasised that the damage exceeds 500 billion dollars, but that funding is already available for projects financed by international (primarily Nordic) funds, whilst they are struggling with a severe shortage of skilled workers.

There is currently a need for immediate reconstruction in Ukraine, particularly in educational and healthcare institutions – where the latest technologies and modular architecture are being utilised. He urged Hungarian designers to make bold use of the reconstruction effort in Ukraine as a testing ground, as they have a vested interest in introducing state-of-the-art technologies.

Their slogan also reflects this: BULID BACK BETTER

He asked ÉVOSZ to compile a list of design and construction firms that might be interested in the reconstruction. As he emphasised, current involvement will be a basic requirement for participation in the tenders: it will be too late to apply for contracts once the war is over.