Mixed picture for Romanian construction

Output in the construction market in Romania is expected to register overall growth of 0.3% year-on-year in 2012, with increases in the civil engineering sector offsetting declines in residential and non-residential construction.

According to research company Buildecon, the country’s civil engineering sector – which represents 43% of total output – is forecast to see 10.3% growth this year, compared to 2011. Buildecon said this was largely due to efforts to absorb as many European structural funds as possible at the end of the programme period.

But growth in civil engineering was countered by declines elsewhere. Output in the residential sector, which represents 32% of overall construction output in Romania, fell 2% in 2011 and is forecast to register a more severe decline this year.

Similarly, non-residential construction, which represents 25% of total output, is also expected to register declines in 2012, despite seeing growth of 6.3% in 2011.

Nevertheless, Buildecon said the residential market is expected to show some recovery in 2013 and 2014, after reaching the bottom this year. The situation in non-residential construction is also expected to improve over the next two years. In contrast, civil engineering is forecast to see a lower growth rate.