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Analysis of construction sector in Romania (update May 2024)

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“Analysis of the construction market in Romania” is likely the most comprehensive report available on the market, examining the evolution of the construction industry in Romania, an industry exceeding a value of 20 billion euros.  Data is updated in May 2024!

The period from 2024 to 2026 is expected to be full of challenges for the construction industry in Romania. In the previous years (2020-2023), many statistical indicators reached their highest levels in the past 6-7 years or even in the last decade. Here are some key points:

  • Average net salaries and private consumption have experienced a certain growth.
  • Investments in infrastructure are witnessing an important growth.
  • The number of housing units under construction or completed in 2023 was lower compared to the figures recorded from 2012 to 2022.

However, despite some positive outlooks, there are numerous barriers to the development of this industry. Rising raw material and energy prices, inflation, and higher financing costs have significantly slowed down the residential construction market. Therefore, 2024 is a year full of challenges. For better transparency, it’s important to have an overview and make decisions in a broader context.

The report addresses the most current questions regarding the construction market:

  • What is the current situation and prospects for residential construction?
  • What are the actual needs for new housing?
  • How much has been built versus the actual needs?
  • What will be the impact of the current context (higher interest rates, more expensive housing) on demand?
  • How has the non-residential sector evolved in recent years?
  • What are Romania’s plans for infrastructure development? In a realistic scenario, how many of these plans will be successfully implemented?
  • What is the gap between what was planned and the actual results in terms of infrastructure investments?
  • How did the main construction materials market (cement, steel rebar, polystyrene, masonry materials, etc.) evolve in 2023 compared with 2022?

Other advantages of the study:

  • It provides all the available construction-related statistical indicators from various sources (NIS, NBR, Eurostat, etc.), updated as of May 2024.
  • It measures the market context in 2023 and the prospects for 2024, taking into account the macroeconomic indicators from the middle of the year.
  • It analyzes the inflationary impact on key market influencers, particularly in the residential construction sector, spanning from 2024 to 2026
  • It shows the evolution of the main construction material markets in the last 5-6 years and in 2023 (cement, steel rebars, masonry materials, roofing, polystyrene, etc.).
  • It provides a 2024-2026 forecast based on influencing factors and current market conditions.
  • It analyzes the main construction materials markets in Romania (cement, steel rebars, masonry materials, roofing, polystyrene, etc.).

The report consists of approximately 95 pages structured as follows:

  • An analysis of the main macroeconomic indicators in Romania compared to other EU member countries
  • A value analysis of the construction market in Romania and the main statistical indicators (building permits, completed buildings, geographical segmentation, etc.).
  • A detailed analysis of the residential construction market (authorized dwellings units, completed dwellings, detailed analysis of influencing factors).
  • Non-residential construction (office buildings, industrial, retail, DIY).
  • Public investments in construction works (road, rail, maritime, air transport infrastructure) – present and future.
  • A centralized forecast of the construction market in Romania (2024-2026).
  • An analysis of the main construction materials markets in Romania (cement, steel rebars, masonry materials, roofing, polystyrene, etc.).
  • A list of the top 100 companies in the construction sector. Their financial performance and that of the sector in recent years.

The detailed content of the study is presented below.

Please note that the report is available in English only.

1. Basic macroeconomic indicators
1.1. Annual GDP 2013-2023 (value, current prices)
1.2. Short-term GDP growth (volume, % y/y)
1.3. Individual sector contribution to GDP (% of Gross Value Added, or GVA)
1.4. GDP growth in Romania vs. European Union (EU 27)
1.5. Inflation – Consumer Price Index (CPI)
1.6. Net investments
1.7. Construction cost
1.8. Inward Foreign Direct Investments in Romania (FDI)
1.9. Economic sentiment indicator
1.10. Population (million persons, Jan 1st)
1.11. Employment rate in Romania vs. European Union (EU27)
1.12. Revenues and expenditure per household

2. Building permits and contracted construction works
2.1. Building Permits – predictor for construction market’s dynamics
2.2. Contracted construction works (construction market) – breakdown

3. Residential: building permits, contracted works, dwellings completed
3.1. Building permits: number, area – by region
3.2. Contracted works – by structure elements and construction objects
3.3. Dwellings stock – breakdown
3.4. How many dwellings are needed in Romania?
3.4.1. Big picture: number of dwellings is rising while resident population is not
3.4.2. The age structure of Romanian dwelling stock
3.4.3. Problems related to Romania’s dwelling stock
3.4.4. Demographic drivers for residential real estate
3.5. Completed (delivered) dwellings
3.5.1. Completed (delivered) dwellings – by region
3.5.2. Completed (delivered) dwellings – by funding source
3.5.3. Authorised versus delivered dwellings
3.6. Financial elements relevant for the residential real estate market
3.6.1. Mortgage lending: interest rates, flow and stock
3.6.2. Households’ incomes, transfers and their bank deposits
3.6.3. Property prices
3.6.4. Real Estate Market Trends and Transactions

4. Non-residential: building permits, contracted works
4.1. Building permits for non-residential constructions
4.2. Contracted works – by structure elements and construction objects
4.3. Non-residential construction market: segmentation
4.3.1. Warehouses, manufacturing facilities a.k.a. Logistic and Industrial
4.3.2. Buildings for wholesale trade and retail a.k.a. Commercial (HoReCa included)
4.3.3. Administrative buildings a.k.a. Office

5. Civil-engineering and other state-funded construction works
5.1. The value of civil engineering construction works
5.2. Road network
5.3. Railways network
5.4. Water and sewage network

6. Forecast of construction market in Romania
6.1. Structural analysis and the forecast of the residential construction market
6.2. Forecast of construction market in Romania – by type of works

7. The analysis of the main construction materials markets in Romania
7.1. Cement market in Romania
7.2. Steel rebar market in Romania
7.3. Analysis of expandable polystyrene market
7.4. Masonry materials market – the total size and segmentation depending of the type of materials
7.5. Roofing materials market

8. Financial analysis of top 100 construction companies in Romania
8.1. Top 100 construction companies
8.2. Top 50 construction companies of residential and non-residential buildings
8.3. Top 50 roads and highways construction companies

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