The domestic construction market had a positive evolution in 2017, and figures for the first quarter of 2018 show a continuation of the trend, according to a study commissioned by Arabesque, Keysfin reads.
The demand for office spaces, housing and industrial constructions has advanced significantly based on the overall positive evolution of the economy, so that the total sector turnover may be approaching RON 30 billion this year, with RON 3 billion above the level recorded in 2016.
After last year’s drop of 5.4 percent of the volume of construction works (gross) when compared to 2016, this year we could see the market reaching an inflection point, said Arabesque experts.
According to INS data, the volume of construction works increased by 8.4 percent in gross series in the first two months of 2018, the evolution being significant on all segments. Capital repair works advanced by 40.4 percent, maintenance and repair ones by 37.5 percent, and the new constructions by 28 percent.
The most dynamic segment, including the number of construction permits, marks the residential sector, a segment in which the volume of construction works increased last year by 69.7 percent. In 2017, there were 41,603 building permits issued for residential buildings, of which 88.9 percent for one dwelling units.
“In 2017, 53,301 dwellings were completed, increase of 1,095 dwellings, when compared to 2016. From the market data, we estimate that this year the number of newly completed dwellings will rise above the 65,000 units”, said the experts.
Last year, most homes completed were in the Bucharest-Ilfov (17.9 percent), North-West (17.8 percent), North-East (15.2 percent), Centre (13.7 percent), South-East (11.4 percent) and South-Muntenia (10.0 percent) regions.
“Beyond the evolution of the residential segment, the first two months of 2018 show an increase in the volume of engineering and non-residential buildings of 34.3 percent respectively 17.0 percent. It is yet another sign that the construction market is accelerating also in this segment after being relatively constant in the past 2-3 years. The positive evolution must be attributed to growing investor confidence in the economy and to the increasing demand across all segments of the market, from offices to residential areas”, Arabesque study shows.