Construction sector in Romania 2011 Development forecasts for 2011-2013

Construction sector in Romania 2011

Development forecasts for 2011-2013

This report offers a comprehensive overview of the Romanian construction industry. It analyses the current market situation in the whole industry as well as in each of the market segments: residential, non-residential, and civil engineering construction. The report provides also forecasts for 3 years, until 2013 and is further enhanced by the profiles of the largest construction companies active in the Romanian construction market.


This publication

  • describes the current situation in the construction industry in Romania
  • presents the opportunities arising on the market for different types of companies and investors
  • responds to the demand for forecasts about the Romanian construction market
  • shows the long-term potential of the Romanian construction sector.

Key topics

  • analysis of the Romanian construction market as a whole and its key constituents such as prices, employment and wages, financial condition of companies, their number, etc.
  • in-depth analysis of the factors that have or may have an impact on the future development of the Romanian construction market
  • analysis of the situation in the civil engineering sector
  • analysis of the situation in the residential construction sector
  • analysis of the situation in the non-residential construction sector
  • profiles of major players active in the Romanian construction market

This publication provides thorough answers to the following questions

  • What is the current and forecast value of the Romanian construction market and its individual segments?
  • What is the expected growth rate of the market and which segment will see fastest growth?
  • What are the sources of financing for transport infrastructure construction?
  • How prices in construction developed in recent years?
  • What are the plans for development of the country’s infrastructure?
  • Who is the biggest player on the Romanian construction market?

 and many more!

The report will prove most useful…

...when starting operations on the Romanian construction market
...when trying to assess the potential of the market
...when effecting a merger or acquisition on the construction market
...when developing predictions regarding the future revenue stream for a company
...when analysing the structure of the Romanian construction market
...when monitoring projects to potentially take part in
...when estimating a particular company’s share in the market
...when making in-house analyses for the management or shareholders.

  It is an indispensable support for

  • manufacturers and distributors of building materials
  • manufacturers and distributors of building machinery and equipment
  • companies that have already entered or are considering an entry to the Romanian construction market
  • companies whose business is design and management of construction projects
  • consulting, research and analysis firms
  • government institutions, embassies, universities and research institutes
  • chambers of commerce, trade and industry organisations
  • financial institutions (banks, brokerage houses, infrastructure funds, investment funds, private equity funds).

Market commentary by expert

After a steep, 37% cumulative contraction of the construction industry and a 25% decrease in employment levels in the sector in 2008-2010, construction in Romania stands a chance of posting a moderate growth in 2011. Contrary to what was expected, recovery will most likely start in the construction of buildings, first of all commercial property, and not in the civil engineering segment. This is due to the ongoing problems with financing major road construction and power infrastructure projects, which, as a result, are put on hold or their completion is delayed.

Robert Obetkon, Senior Construction Analyst

 

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PMR reports are a serious contribution to the market overview picture, focusing our attention on key events in the industry as well as highlighting both general and specific market indicators. Together, these components are the base for our future forecasts of construction market development and help us to plan our sales. Market Analyst, Alpha Cement
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We use PMR's services due to their analysts' extensive experience in market analysis, their high quality and level of engagement in the market research carried out for us. We consider PMR a competent and professional company and recommend them as a reliable partner in the area of economic information and market analysis. Senior Trade and Investment Adviser, British Embassy in Warsaw
Schueco International Poland wishes to recommend PMR Publications, as a trustworthy market information provider. PMR's prognoses concerning the construction sector are particularly worth recommending, as they are reliable and well prepared. Using them helps our company successfully plan further development. Managing Director, Schueco International Poland
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  1. Methodology of the report p. 7

  2. Executive summary p. 9

  3. Macroeconomic overview p. 19

    • Introduction p. 19
    • Gross Domestic Product p. 20
    • Gross Value Added in construction p. 20
    • Gross fixed capital formation p. 21
    • Foreign direct investment p. 21
    • Inflation p. 22
    • Economic outlook p. 22
  4. Construction overview p. 25

    • Construction output p. 25
    • Construction companies p. 28
      • Number p. 28
      • Financial condition of construction companies p. 28
    • Employment and wages p. 29
    • Construction prices p. 31
    • Business confidence within the construction industry p. 32
    • Building materials industry overview p. 32
    • Legal changes relevant to the construction market p. 34
    • Forecasts p. 35
  5. Civil engineering p. 37

    • Overview p. 37
    • Projects associated with environmental protection p. 39
    • Road transport p. 42
    • Railway transport p. 49
    • Air transport p. 52
    • Investment in heavy industry p. 53
    • Forecasts p. 54
  6. Non-residential construction p. 55

    • Introduction p. 55
    • Industrial and warehouse construction p. 56
    • Retail and service space p. 58
    • Office construction p. 60
    • Hotel construction p. 63
    • Construction of public utility buildings p. 65
    • Forecasts p. 65
  7. Residential construction p. 67

    • Introduction p. 67
    • Housing stock p. 67
    • Dwelling completions p. 68
    • Building permits p. 69
    • Overview of major residential projects p. 70
    • Residential construction development programmes p. 72
      • First Home Programme p. 72
      • Rebirth of the Romanian Village p. 73
    • Housing prices p. 74
    • Mortgage market p. 74
    • Forecasts p. 75
  8. Profiles of the 10 largest contractors p. 77

    • Strabag SRL p. 77
    • Danya Cebus Rom SRL p. 79
    • Alpine p. 80
    • Bog’Art p. 81
    • Vega‘93 p. 82
    • Build Corp SRL p. 82
    • Real Design Trust p. 83
    • Viarom Construct p. 84
    • Aedificia Carpati p. 84
    • Conarg SA p. 85
  9. List of graphs p. 87

  10. List of tables p. 89

  11. About PMR p. 91

  12. Contact PMR p. 92

List of graphs

  1. Real change in GDP in Romania (%, y-o-y), 2006-2013
  2. Construction output in Romania (%, y-o-y, real change), 2006-2010
  3. Construction market breakdown in Romania, 2006-2010
  4. Construction output in Romania (RON bn and y-o-y nominal change), 2006-2013
  5. Civil engineering construction output in Romania (RON bn and nominal y-o-y change), 2006-2013
  6. Non-residential construction output in Romania (RON bn and nominal y-o-y change), 2006-2013
  7. Homes completed in Romania (’000 and y-o-y change), 2004-2010
  8. Residential construction output in Romania (RON bn and nominal y-o-y change), 2006-2013
  9. Real change in GDP in Romania (%, y-o-y), 2006-2013
  10. GDP accounted for by GVA in construction in Romania (%), 2006-2010
  11. Gross fixed capital formation in Romania (%, y-o-y), 2006-2010
  12. Foreign direct investment in Romania (€ bn), 2006-2010
  13. Consumer price index in Romania (%, y-o-y), 2006-2013
  14. Construction output in Romania (%, y-o-y, real change), 2006-2010
  15. Construction market breakdown in Romania, 2006-2010
  16. Number of construction companies in Romania (’000), 2006-2010
  17. Number of employees in the construction industry in Romania (’000), 2006-2010
  18. Average monthly wages in construction in Romania (RON), 2006-2010
  19. Changes in Construction Price Indices in Romania (%, y-o-y), 2008-Q1 2011
  20. Changes in Construction Price Indices in Romania (%, m-o-m), 2009-February 2011
  21. Construction confidence, order books and employment expectations in the Romanian construction industry, June 2010-May 2011
  22. Cement production in Romania (million tonnes and y-o-y change), 2005-2011
  23. Per capita cement consumption in Romania (kg/year/inhabitant), 2006-2013
  24. Construction output in Romania (RON bn and y-o-y nominal change), 2006-2013
  25. Financial Plan for TSOP Funds in Romania (€ m), 2007-2013
  26. Pan-European Corridor IV on the territory of Romania, 2011
  27. Pan-European Corridor IX on the territory of Romania, 2011
  28. Operational motorways and motorway projects in Romania, 2011
  29. Railway projects in Romania, 2011
  30. Civil engineering construction output in Romania (RON bn and nominal y-o-y change), 2006-2013
  31. Total industrial and warehouse space in Romania (million m2), 2005-2013
  32. Total retail and service space in Romania (million m2), 2005-2013
  33. Total office space in Romania (million m2), 2005-2013
  34. Categories of hotels in Romania, 2010
  35. Non-residential construction output in Romania (RON bn and nominal y-o-y change), 2006-2013
  36. Homes completed in Romania (’000 and y-o-y change), 2004-2010
  37. Homes completed in Romania (%), by area, 2004-2010
  38. Geographical distribution of homes completed in Romania, 2010
  39. Number of homes for which building permits were issued in Romania (’000), 2005-2011
  40. Residential construction output in Romania (RON bn and nominal y-o-y change), 2006-2013
  41. Homes completed in Romania (’000 and y-o-y change), 2004-2013

List of tables

  1. Basic economic indicators for Romania, 2011-2013 10,
  2. Insolvencies in the construction industry in Romania, 2008-2010
  3. Personnel indicators in construction in Romania, 2008-2010
  4. Regional distribution of approved environmental protection projects within Priority Axis 1 – the expansion and modernisation of water and waste water systems, 2008-2010
  5. Environmental protection projects planned or underway in Romania, 2010-2013
  6. Construction of motorways in Romania, 2006-2017
  7. Road construction projects paid for by ISPA Fund in Romania, 2002-2014
  8. Construction plan for the Northern Branch of Pan-European Corridor IV, 2001-2013
  9. Motorway projects underway or planned in Romania, 2011-2013
  10. Expressway construction, planned projects in Romania, 2008-2017
  11. Bypass construction, projects planned in Romania, 2010-2014
  12. Railway track restoration projects in Romania, 2011-2015
  13. Railway station restoration projects in Romania, 2011-2013
  14. Airport construction projects in Romania, 2011-2015
  15. Energy construction projects in Romania, 2011-2017
  16. Industrial and warehouse projects in Romania, 2010-2013
  17. Rents and yields of prime industrial warehouse space in Romania, 2009-2010
  18. Retail projects to be delivered in Romania in 2011-2013
  19. Main big-box deliveries in Romania, 2010
  20. Prime shopping centres and big-box rents in Romania, 2009-2010
  21. Most important office building projects delivered in Romania, 2010
  22. Office building projects planned in Romania for 2011-2013
  23. Total supply and vacancy rates of office buildings in Bucharest, at the end of 2010
  24. Major hotel projects delivered in 2010 or due to be delivered between 2010 and 2013
  25. Most important public construction projects planned or underway in Romania, 2011-2015
  26. The largest residential projects in Romania, 2010-2011
  27. The largest residential projects planned in Romania, 2011-2013
  28. Sale prices of new apartments in Romania (€/m2 of usable area), 2008-2011
  29. Strabag’s key financial data, 2005-2010
  30. Danya-Cebus Rom SRL’s key financial data, 2007-2010
  31. Alpine’s key financial data, 2005-2010
  32. Bog’Art’s key financial data, 2005-2010
  33. Vega‘93 key financial data, 2005-2010
  34. Build Corp SRL’s key financial data, 2005-2010
  35. Real Design Trust’s key financial data, 2005-2010
  36. Viarom Construct’s key financial data, 2005-2010
  37. Aedificia Carpati’s key financial data, 2005-2010
  38. Conarg SA’s key financial data, 2005-2010