Construction Market in Romania 2015-2019
About Construction Market in Romania
The construction market in Romania has been witnessing a positive rebound since 2013 after a double digit growth decline in 2008-2010 because of the global economic crisis. The market growth is led by resurgence in the real estate market and increased investments in the infrastructure sector. Rising income levels and an increase in the employment rate are propelling the demand for residential property, particularly from the middle income group. Further, the boom in the service sector particularly in IT, retail, and BPO is driving the demand for office space in the country. The government is also placing huge emphasis on the development of energy-efficient buildings. Moreover, a decrease in construction tax from 1.5% to 1% from January 2015 is further accelerating the market growth.
Technavio's analysts forecast the construction market in Romania to grow at a CAGR of 3.38% over the period 2014-2019.
Covered in this Report
This report covers the present scenario and growth prospects of the construction market in Romania for 2015-2019. To calculate the market size, the report considers correlation between the GDP of Romania and construction investments. It provides a detailed segmentation of the construction market in Romania by sector. The report forecasts the investments in the building and civil engineering construction sectors in the country for 2015-2019.
Technavio's report, Construction Market in Romania 2015-2019, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects in the coming years. The report also includes a discussion of the key vendors operating in this market.
Technavio Announces the Publication of its Research Report – Construction Market in Romania 2015-2019
Technavio recognizes the following companies as the key players in the Construction Market in Romania: Hidroconstructia, REALDESIGN TRUST, S.C. Heberger Constructii and Tecton Trust
Other Prominent Vendors in the market are: Delta ACM and PAB Romania
Commenting on the report, an analyst from Technavio’s team said: “The green building market in Romania is gaining immense prominence. Green buildings are energy-efficient buildings that consume less energy. Construction of green buildings limits carbon dioxide emission into the atmosphere. Skanska Romania developed Green Court office building in Romania in 2014 and the second phase of the construction is presently in the pipeline. The building is expected to consume 40% less energy than the Romania energy code for office buildings. Further, to increase demand for sustainable buildings in the country, the Romania Green Building Council along with leading regional banks has developed a Green Mortgage financing product in 2012. The Green Mortgage aims at providing discounted mortgage to buyers subjected to guidelines established by the council.”
According to the report, investment in transport infrastructure is driving demand for the construction industry in Romania. Romania has a poor transport infrastructure quality as compared to other European countries. In 2014, Romania was ranked 89th out of 144 countries. Therefore, to develop transport infrastructure, the government is aiming to invest more in this segment. It is estimated that $51.49 billion worth of investment will be funded through the EU Cohesion Policy 2014-2020 toward transport infrastructure development in Romania. Investment will be made toward development of roads, highway, railways, ports, and airports.
Further, the report states that poor infrastructure quality has high impact on growth of the economy as it hampers business productivity, foreign investment and international competitiveness.
Hidroconstructia, REALDESIGN TRUST, S.C. Heberger Constructii, Tecton Trust, Delta ACM, PAB Romania