The IntelliNews Romania Construction Sector Report offers an extensive summary of the most recent topics related to the Romanian construction and infrastructure market. It includes a complete coverage of the latest market developments and news, accompanied by thorough statistics and comments. The report pays particular attention to new development projects and investment inflows in the sector. This sector report is ideal to keep you abreast on recent company and industry news. Written by local professionals, it is a unique market and business intelligence analysis, tailored to save time by providing in-depth information, while helping you to make confident and informed business decisions.
The construction works volume dropped by x.x% y/y in Q2 and x.x% y/y in H1/2013, with the civil engineering segment, expected to be the main growth driver, recording the steepest plunge in H1, namely minus x.x% y/y, statistical data show. The construction works returned on upward path in July, when it increased at double-digit pace y/y, but such cheering performance is partly explained by low base comparison- in July 2012 the construction works volume diminished abruptly after the local elections in June. Prior to the elections, the authorities rushed to spend the funds earmarked for infrastructure projects. Accordingly, part of the poor sector performance in Q2/2013 is also explained by the high base comparison in the corresponding quarter last year. Compared to Q2/2011, the construction works volume in Q2/2013 actually increased by x.x%.
The sector outlook in the short run is rather pessimistic. The infrastructure investments, supposed to propel the activity in constructions, have been cut down and the unblocking of the major projects is uncertain. At the same time, the investors’ confidence maintains at low level, which is reflected in the lack of new projects in the segment of buildings construction.
The real estate market seems to have stabilized both in the residential and commercial segment. The gap between asking and selling prices narrowed, which reflected in the rising number of transactions recorded in H1/2013.
Residential real estate prices further eased annual decline in Q1/2013, when the lowest y/y decline was recorded in the past three years. Notably, while prices of apartments maintained on downward path, the price of houses actually increased by 3.3% y/y over the quarter, after having risen by 8.2% y/y in Q4/2012.
Nonetheless, retail remains the most dynamic segment in terms of transactions and new developments. Albeit focusing on smaller projects, mostly financed through their own resources, shopping centre owners move on with new developments. Interestingly, even though currently Bucharest accounts for some 30% of the country’s modern retail stock, the capital city remains highly attractive for retailers, in detriment of other cities with low modern retail penetration.
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Table of Contents
Construction works performance remains poor in Q2, H1/2013
Deteriorating construction activity impacts negatively upon GDP performance in H1/2013
Romanian construction sector lags behind EU average in Q2/2013, but July indicators notably improve
Investments in national economy down 2.3% y/y in H1/2013, construction sector’s stake diminishes abruptly
Number of finished dwellings returns on negative y/y path in Q2/2013
Number of building permits drops 4.5% y/y in H1/2013
Construction industry association expects poor sector performance in H2
Antitrust authority concludes study on road infrastructure construction sector
Tehnostrade - Spedition UMB consortium wins tender for construction of Lugoj-Deva highway section
Astaldi to finalise flyover in Bucharest, after termination of contract with insolvent Romstrade
Astaldi-Max Boegl consortium may build EUR 56mn motorway section
Investment fund SIF Banat-Crisana raises stake in Romanian construction firm Transilvania Constructii
Public roads company launches EUR 550mn tender for Sebes-Turda motorway sections
Value of real estate investments up 32% y/y in H1/2013- study
Number of real estate transactions rises 19.4% y/y in H1/2013- official statistics
Residential real estate prices further ease y/y decline in Q1/2013
Shopping mall openings in H2 expected to drive modern retail stock to 2.85mn sqm by yearend
Bucharest ranks 4th among European capital cities by office space supply in pipeline- study
Contract renewals for logistics spaces reach highest historical level in H1/2013
SA fund NEPI acquires 70% stake in Mega Mall project in Bucharest, to start works in October
NEPI raises EUR 45mn to finance Romanian real estate projects
Polish-based Echo Investment eyes acquisition of shopping centres countrywide
Table 1 Construction sector performance in 2007-2013 (y/y)
Table 2 GDP and Construction output in 2012-2013 (annual, quarterly)
Table 3 Construction output in 2012-2013 - Romania, EU28 (y/y, in %)
Table 4 Completed dwellings per type of financing in 2010-2013 (annual, quarterly, y/y)
Table 5 Licenses for residential buildings issued in 2007-2013 (number, y/y)
Table 6 Building permits by type of building, issued in 2009-2013 (number)
Table 7 Funds earmarked for road infrastructure projects since 2009 (RON thou)
Table 8 Residential property price indices in 2010-2013 (quarterly, 2009=100)
Table 9 Residential property price indices in 2010-2013 (quarterly, y/y)
Table 10 Major modern retail projects completed in 2012-2013
Table 11 Major office projects scheduled for delivery in 2013-2014
Figure 1 Construction works index in 2005-2013 (monthly, y/y)
Figure 2 Construction works index in 2006-2013 (monthly, 2010=100)
Figure 3 Investments in national economy by sector in 2012-2013 (% in total)
Figure 4 Dwelling stock by residence in 2007-2012 (mn dwellings, eoy)
Figure 5 Total number of building permits issued in 2009-2013 (number)
Figure 6 Licenses for residential buildings issued in 2007-2013 (number, monthly)
Figure 7 Construction sector in 2008-2013f (EUR bn, y/y)
Figure 8 Romania's road infrastructure structure (road type, % of total)
Figure 9 Highway network completed in 2009-2012 (km, annual)
Figure 10 Number of real estate transactions in 2012-2013 (thou, monthly)
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