Construction in heavy industry and railway development look set to propel Slovenia’s construction industry in the years ahead, according to European market research firm PMR.
In a report called Construction Sector in Slovenia 2014 – Development forecasts for 2014 to 2019, the firm points out that, while the country has entered its new Cohesion Fund period 2014 to 2020 with €3.25 billion in available funds, this is much less than the €4.2 billion Slovenia received for investment in the period of 2007 to 2013.
Slovenia’s construction output dropped by 5% in 2013 and is expected to fall by up to 3% in 2014. However, according to PMR, 2015 will see a market turnaround as macroeconomic forecasts show encouraging signs of improvement.
PMR said that major factors set to have a favourable bearing on market forecasts include the availability of EU funds for new investment, the recapitalisation of domestic banks, and falling prices for residential and non-residential buildings. Other positive factors include improving economic conditions, and the beginning of a new era supporting construction companies.
According to the study, development forecasts for Slovenian civil engineering are improving, with impressive projects pending in the heavy industry construction segment. Here, PMR analysts see 2014 continuing the output turnaround from 2013, when there was an increase of nearly 5%.
Railway construction, which showed some positive signs in 2013, has the most potential for development in future years, said PMR, with possible investment exceeding €1 billion by 2016.
Other sectors expected to see growth include industrial building and warehouse construction.
According to PMR, attention should also be paid to the public entertainment, education, hospital and institutional care segments. The fact that there are poor public hospitals and the reconstruction of institutional care and educational centres can be seen as positive developments for non-residential output in the future. This segment will see heavy state investment in 2014 and 2015.