Slovenian construction market worth €1.5 billion

The Slovenian construction market is to stabilise at €1.5 billion in 2013, according to European market research and consulting company PMR.

PMR stated that after an average 17% drop per year in the period 2009-2011, the market dropped by only 13% in 2012 to reach €1.5 billion. For 2013 PMR analysts expect the market to stabilise at the 2012 level.

The most promising developments are expected in civil engineering construction where the Slovenian government has plans for infrastructure investment, including hydropower stations on the River Sava and railway track modernisation, PMR reported.

PMR’s analysts see 2013 as a year of gradual output turnaround in engineering. Projects under construction or planned in 2013 in the railway and industrial construction segments keep them optimistic about Slovenian civil engineering. And 2013 is expected to be a positive year overall with nearly 6% growth.

The most positive trend will be seen in industrial construction. This has already contributed to a lower drop in total civil engineering output in 2012 and will be one of the key drivers for market recovery in 2013-2015. The construction of the second reactor in Krsko at a cost of €3.5 to €5 billion will swell industrial construction output considerably.

According to PMR, residential construction is still a negative trend with a decreasing number of housing starts and building permits being issued. After a 20% decline in 2012, residential construction output will continue to be under pressure in the period 2013-2014. PMR expects a modest improvement in 2015, but expects the market to bottom at around €150 million.

Non-residential output is also in a negative trend, with a 15% decline in 2012. In 2013-2014 it is expected to decline at 10% per year, with a slight turnaround in 2015. PMR estimates that non-residential construction output will bottom out at around €400 million.