Construction sector in Romania 2012 Development forecasts for 2012-2014

Construction sector in Romania 2012

Development forecasts for 2012-2014

Construction sector in Romania 2012-2014 offers a comprehensive overview of the Romanian construction industry. This new document analyses the current market situation for the entire industry, as well as that of each market segment: residential, non-residential, and civil engineering construction. In addition to current conditions, the report provides forecasts for three years, until 2014.

Updates on Romanian construction during 2011

  • Retail and services is the best performing segment of non-residential construction. Developers are still launching projects, though not as many as in previous years.
  • In 2011, investors secured more construction permits for non-residential buildings than in 2010, signaling market recovery in the future.
  • As many as two thirds of all the residential projects completed in Bucharest in 2011 remained unsold at year’s end.
  • Civil engineering construction performed better in 2011 when compared to the other segments, which posted decreases.

 

Additional enhancements include

  • Analysis of the competitive environment in the Romanian construction market, including contractors and producers of building materials.
  • Excel Directory of the Top 100 contractors in Romania
  • Excel Database of the Top 100 planned projects in Romania
  • Compatibility with PMR reports on other countries, e.g. Czech Republic, Poland or Slovakia.

 

The report enables readers to explore key industry topics in detail

  • Analysis of the entire Romanian construction market and its main components, such as prices, employment and wages, number and financial condition of top companies, and more.
  • In-depth analysis of the factors that stand to impact the future development of the Romanian construction market
  • Analysis of conditions and trends in the civil engineering, residential and non-residential sectors.
  • Analysis of the competitive environment in the Romanian construction market.

 

Discover answers to essential questions, such as

  • 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 experience growth most quickly?
  • What are the top financing sources for transport infrastructure construction?
  • How have prices in Romanian construction changed in recent years?
  • How many flats will be completed in 2012-2014?
  • What are the plans for development of the country’s infrastructure?
  • What are the investment plans of the largest commercial developers?
  • Who is the biggest player on the Romanian construction market?
  • Which companies are market leaders in production and sale of building materials?

 

Companies analysed in this report

Hidroconstructia, Confort, Tehnologica Radion, Romstrade,Umb Group, Strabag, Energomontaj, Delta A.C.M, Romelectro, Vega 93, Bog 'art, PORR Construct, Euro Construct 98, Alpine, Bechtel International INC, Aedificia Carpati, Romairport, Straco Grup, Astaldi SpA, Colas Romania, Holcim Carpatcement Lafarge Tehnologica Radion, Romstrade, Spedition Umb, ArcelorMittal, Ruukki Romania, Saint Gobain, Adeplast, Gecsat, Lindab, Megaprofil, Ruukki, Henkel, Adeplast, Baumit, Lasselsberger, Kai Ceramics, Ceramica, Wienerberger, Macon, Celco, Arcon, Zentyss, Austrotherm Com.

 

Make solid, well-informed business decisions when

  • Starting new operations on the Romanian construction market
  • Conducting an assessment of the market’s potential
  • Effecting a merger or acquisition on the construction market
  • Developing predictions regarding future revenue streams for a company
  • Analysing the structure of the Romanian construction market
  • Monitoring the most promising potential projects
  • Estimating a particular company’s share in the market
  • Creating accurate in-house analyses for management or shareholders.

 

Construction sector in Romania 2012-2014 is specifically targeted to meet the informational needs of

  • 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 engaged in the design and management of construction projects
  • Consulting, research and analysis firms
  • Government institutions, embassies, universities and research institutes
  • Chambers of commerce, trade and industry organizations
  • Financial institutions (banks, brokerage houses, infrastructure funds, investment funds, private equity funds).

 

Extract from this report

  • In 2011, construction firms' revenue from the sales of engineering construction services exceeded 50% of total construction output.
  • We expect cement consumption levels to remain stable in 2012 or to post a growth in the region of 3%.
  • The new Romanian government, particularly the new Ministry of Transportation, plans to continue what was already begun by the previous one.

 

Market commentary by expert

After poor 2009-2010 for the Romanian construction industry and stabilisation in 2011, for 2012 we expect first market growth, resulting from the execution of large EU co-financed infrastructure investments, as well as some stabilisation in building construction, particularly in non-residential buildings.

Bartłomiej Sosna, Head Construction market Analyst

 

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  1. Report methodology p. 7

  2. Executive summary p. 9

  3. Macroeconomic overview p. 13

    • Gross domestic product p. 13
    • Gross value added in construction p. 14
    • Gross fixed capital formation p. 14
    • Fiscal policy p. 16
    • Foreign direct investments p. 17
    • Inflation p. 18
    • Labour market and private consumption p. 18
    • Romanian economic outlook p. 20
  4. Construction overview p. 21

    • Construction market value p. 21
    • Construction output p. 22
    • Construction companies p. 24
    • Employment and wages p. 24
    • Construction prices p. 26
    • Business confidence in construction p. 26
    • Cement production p. 27
    • Legal changes relevant to the construction market p. 28
    • Development forecast for construction output in 2012-2014 p. 29
  5. Civil engineering construction p. 31

    • Situation in the civil engineering construction market p. 31
    • Environmental protection-related projects p. 33
    • Road transport p. 36
    • Railway transport p. 43
    • Air transport p. 47
    • Investments in heavy industry p. 50
    • Development forecast for civil engineering construction in 2012-2014 p. 52
  6. Non-residential construction in Romania p. 55

    • Situation in the non-residential construction market p. 55
    • Industrial and warehouse construction p. 58
    • Retail and service construction p. 61
    • Office construction p. 66
    • Hotel construction p. 69
    • Development forecast for 2012-2014 p. 73
  7. Residential construction p. 75

    • Housing stock p. 75
    • Building and dwelling completions p. 77
    • Housing starts and building permits p. 81
    • Overview of major residential projects p. 83
    • Residential construction development programmes p. 85
    • Housing prices p. 87
    • Mortgage market p. 88
    • Investment of individuals p. 90
    • Development forecasts for 2012-2014 p. 91
  8. Competitive environment p. 95

    • Market competition p. 95
    • Latest mergers and acquisitions p. 98
    • Financial standing p. 99
    • Key contractors p. 100
    • Key producers of building materials p. 104
  9. List of graphs p. 109

  10. List of tables p. 111

  11. About PMR p. 113

  12. Contact PMR p. 114

List of graphs

  1. Forecasts for construction and assembly output growth in Romania, by type of construction (%), 2011-2014      10
  2. GDP at current prices (RON bn) and real change (%) in Romania, 2006-2014      14
  3. Real change of GDP and change in gross fixed capital formation in Romania (%), 2006-2014      15
  4. General government debt and deficit in Romania (% of GDP), 2004-2010      16
  5. FDI in Romania (€ m), 2006-2011      17
  6. CPI in Romania (%), 2006-2014      18
  7. Change of average real monthly gross wage, household consumption and unemployment rate in Romania (%), 2006-2014      19
  8. Value of the construction output in Romania (RON bn) and change (%), 2006-2011      21
  9. Real change in construction output in Romania (%, y-o-y), January 2010-January 2012      22
  10. Structure of construction output in Romania, by segment, 2006-2011      23
  11. Structure of construction output in Romania, by region, 2010      23
  12. Employment in construction sector in Romania (‘000) and y-o-y change (%), 2007-2011      25
  13. Average gross monthly wage in construction in Romania (RON) and y-o-y change (%), 2007-2011      25
  14. Annual rate of increase in prices in construction sector in Romania (%, y-o-y), 2006-2011       26
  15. Construction confidence indicator in Romania, January 2009-March 2012      27
  16. Change in cement production and consumption in Romania (%, y-o-y), 2008-2011      27
  17. Value of the construction output in Romania (RON bn, current prices) and nominal change (%), 2006-2014      29
  18. Civil engineering construction output in Romania (RON bn) and y-o-y change (%), in current prices, 2006-2011      32
  19. Structure of civil engineering construction output in Romania, by category, 2010      32
  20. Structure of civil engineering construction output in Romania, by category, 2011      33
  21. Existing and planned motorways in Romania, 2012      39
  22. Modernisation of railway lines in Romania until 2015      43
  23. Railway construction output in Romania (RON bn) and y-o-y change (%), in current prices, 2006-2011      44
  24. Total number of passengers in Romanian airports (million) and y-o-y change (%), 2006-2020      47
  25. Civil engineering construction output in Romania (RON bn) and y-o-y change (%), in current prices, 2008-2014      53
  26. Non-residential construction output in Romania (RON bn) and y-o-y change (%), in current prices, 2006-2011      56
  27. Structure of non-residential construction in Romania, by category, 2010      56
  28. Structure of non-residential construction in Romania, by category, 2011      57
  29. Industrial and warehouse construction output in Romania (RON bn) and y-o-y change (%), in current prices, 2006-2011      58
  30. Delivery of industrial and warehouse space in Bucharest (‘000 m2), 2006-2011      59
  31. Retail and wholesale construction output in Romania (RON bn) and y-o-y change (%), in current prices, 2006-2011      62
  32. Office construction output in Romania (RON bn) and y-o-y change (%), in current prices, 2006-2011      66
  33. Modern office space delivered in Bucharest (‘000 m2), 2005-2013      67
  34. Hotel construction output in Romania (RON bn) and y-o-y change (%), in current prices, 2006-2011      69
  35. Total number of hotels in Romania, 2005-2011      70
  36. Non-residential construction output in Romania (RON bn) and y-o-y change (%), in current prices, 2008-2014      74
  37. Building permits for residential buildings in Romania, by rural/urban area, 2005-2011      82
  38. Number of building permits and completed homes in Romania, 2005-2011       83
  39. Residential mortgage value (RON m) and change (%) in Romania, November 2007-November 2011      89
  40. Balance of intention to carry out home improvements over next 12 months in Romania, Q1 2007-Q4 2011      90
  41. Balance of intention to purchase or build a home over next 12 months in Romania, Q1 2007-Q4 2011      90
  42. Residential construction output in Romania (RON bn) and y-o-y change (%), 2005-2014      92
  43. Housing completions in Romania and y-o-y change (%), 2005-2014      93
     

List of tables

  1. Forecasts for the main economic indicators in Romania for 2011-2014      20
  2. Number of construction companies in Romania, by number of employees, 2006-2009      24
  3. Payments to beneficiaries of funds under POS Mediu scheme in Romania (€ m), 2007-2011      34
  4. Major environmental protection projects in Romania, 2012-2014      35
  5. Road network in Romania, by pavement type and by road rank (km), 2008-2010      36
  6. Road construction output in Romania (RON bn) and y-o-y change (%), in current prices, 2006-2011      37
  7. Largest contractors in road rehabilitation in Romania, 2012      41
  8. Major road construction projects in Romania, 2012-2016      42
  9. Major railway construction projects in Romania, 2012-2015      46
  10. Major airport construction projects in Romania, 2012-2015      50
  11. Investments in wind power generation in Romania, 2011      51
  12. Major heavy industry construction projects in Romania, 2012-2018      52
  13. Building permits issued for non-residential buildings in Romania, 2005-2011      57
  14. Industrial and warehouse space in Romania, by location, 2011      59
  15. Delivery of industrial and warehouse space in Romania, 2011       60
  16. Building permits issued for retail and wholesale buildings in Romania, 2009-2011      62
  17. Major grocery chains and number of stores in Romania, 2010-2012      65
  18. Major retail and service projects in Romania, 2012-2013      65
  19. Major office development projects in Romania, 2012      68
  20. Building permits issued for hotels in Romania, 2009-2011      70
  21. Total number of hotels in Romania, by location, 2010-2011      71
  22. Hotel capacity in Romania (’000 places), 2005-2011      71
  23. Hotel occupancy rate in Romania (%), 2005-2011      72
  24. Housing stock in Romania, by rural/urban area, 2005-2010      75
  25. Average area, number of rooms of dwellings and average size of rooms in Romania, 2005-2010      76
  26. Structure of dwellings, by number of rooms, and by rural/urban area, 2007-2010       76
  27. Homes completed in Romania (number and y-o-y change), 2005-2011      78
  28. Number of dwellings completed in Romania, by financing source, 2005-2011      78
  29. Number of dwellings completed in Romania, by rural/urban area, 2005-2011      78
  30. Number of dwellings completed in Romania, by region, 2005-2011      79
  31. Number of dwellings completed in Romania per million inhabitants, by development regions, 2009-2011      79
  32. Number of dwellings completed in Romania, by number of rooms, 2005-2010      80
  33. Average area of dwellings completed in Romania (m2), by rural/urban area, 2005-2010      80
  34. Building permits for residential buildings in Romania, by number and total area, 2005-2011      81
  35. Building permits for residential buildings in Romania, by type of building, 2005-2011      81
  36. Building permits for residential buildings in Romania, by development region, 2005-2011      82
  37. Residential projects in Bucharest, on hold as of 2012      84
  38. Major housing projects in Romania, 2012-2015      84
  39. Key figures of the Prima Casa Governmental Programme, 2009-2012      85
  40. Number of dwellings completed through the main governmental programmes in Romania, 2009-2011      86
  41. Housing prices in Romania, 2005-2011      87
  42. Loan to value ratios for mortgage loans according to select crediting scenarios following the new 2012 crediting regulations, 2012      88
  43. Revenues and profit of top 100 construction companies in Romania (RON m) and y-o-y change (%), 2007-2010      99
  44. Financial data of the top 20 contractors in Romania (RON m), 2007-2010      103
  45. Production of building materials in Romania (RON bn) and y-o-y change (%), 2008-2011      104
  46. Price evolution of main building materials in Romania (RON, net), by type of materials, 2010-2011      105
  47. Investments in new production facilities planned by building materials manufacturers in Romania, 2012-2013      105
  48. Major producers of building materials in Romania, by type of materials, 2008-2010      107