Romania, ranks 3rd at constructions in the region

The construction market from Romania was last year the third in Central Europe, under Poland and the Czech Republic but over Hungary and Bulgaria. However, the market from our country can increase in the next years, having the highest increase rhythm from Europe.

The value of the construction market from Romania was last year of 9,2 billion euro, the third from Central Europe, according to a study of the consulting and audit company Deloitte. It must be mentioned that the Employees Constructions Companies and the Romanian Association of the Contractors in Constructions estimated the construction market to over ten billion euro, estimating for this year an increase between 20% and 35%.

After Poland and the Czech Republic, in front of Hungary and Bulgaria

On the first position in the Deloitte’s top was Poland, which has a market of almost four times bigger then the one from our country, with a level of 35,3 billion euro. The second position was occupied by the construction market from the Czech Republic (17,8 billion euro), almost double against the one from Romania. In the Deloitte’s top, our country exceeds Hungary, whose construction market was last year with 15% lower then ours, being of 7,8 billion euro. Moreover, Romania had a construction market with a value of 74% higher also then the one from Bulgaria (5,3 billion euro). The value of the construction market from our country was twice higher then the market in domain from Slovakia, which was of 4,6 billion euro. Romania exceeded third times also the value of the construction markets from Croatia, this being of 2,7 billion euro. On the other hand, in the first quarter of this year against the same period of last year, Romania had the highest rate of increase of the construction markets from Europe, of 32%, according to Eurostat.

The highest demand is for houses

The construction companies from Central Europe will continue to obtain significant revenues in the area thanks to the great demand for houses. “The construction companies which focus on the residential segment will continue to benefit of the houses deficit from the area, as also by developing the market of the mortgaged credits. In Central Europe there is recorded a big deficit of housing especially in countries as Poland, Romania and Bulgaria”, it is mentioned in the Deloitte study. In the region were developed few houses after 1989, the most part of the apartments before this period having an inferior quality. “The prices of the houses from the new member states of the European Union touched relatively high levels. In these conditions the foreign investors which have purchased apartments in Romania and Bulgaria could direct their attention towards new markets, such as Serbia, Moldavia and Montenegro”, it is added in the Deloitte study.

Central Europe it is still in reconstruction

Besides housings,  a big demand of end product it is also on the offices segment and the one of the commercial spaces, in which the level of the modern supplied spaces is much inferior to the one of the Western Europe. On the retail segment, the level at one thousand inhabitants in Romania is at 25 square meters, eight times smaller then the European average, almost ten times below the one of Spain, where is of 240 square meters, and about 13 times smaller against the Netherland, which has 319 square meters. The highest level of the retail spaces from Central Europe, reported to one thousand inhabitants is in Poland, which has 142 square meters, five times and a half against Romania. Also Poland is situated with 44% under the European average, with almost 70% smaller then the one from Spain and over two times less then the one of Netherland.

Moreover, the increase of the number of tourists from Central Europe will also increase the interest for investments in hotels. “In Romania, Bulgaria and Lithuania, the level of non-occupying of the modern supplied commercial spaces - offices, retail, industrial and hotels - is of  5% in the capitals of the respective countries”, it is added in the Deloitte study. Also, the involvement in public projects, as the ones of road and air infrastructure, will direct to the increase of the construction market from the region.

The countries from the Central Europe will receive until 2015 significant funds for the infrastructure modernization. Most of the funds will revert to Poland, of about 67 billion euro, fallowed by Romania, with about 50 billion euro, then by the Czech Republic and Hungary, about 20 billion euro each.

The developers

The most advantaged by the increase of the construction markets from the area are the real-estate developers, Deloitte study also mentions. The profit rate obtained by these will continue to be in percentage of two figures, even if the market will slow down the increase. On the other hand the construction companies, in conditions of increasing the prices for construction materials and of the labour force, will have to make more efficient the project management, the labour quality and the safety against the subcontractors.