Market research and consulting firm PMR predicts that the Slovak construction market will stabilise this year, after a slump in public investment in 2012.
Last year saw the Slovak construction market register a fourth consecutive year of decline and the worst negative result since the economic crisis hit the country, of more than -13% year-on-year. The year also saw total construction output in the country go below the €5 billion threshold.
PMR forecast civil engineering will recover slightly this year, driven by the use of EU funds to conduct large infrastructure projects, which had been delayed. Meanwhile, non-residential construction output should remain at similar levels as in 2012.
In February 2013, the government confirmed its plans to fund road infrastructure construction in the coming years. By the end of 2015, it wants to have contracted all the road infrastructure work covered by the EU funding programme 2014-2020 and get construction underway between 2015 and 2020.
PMR said non-residential construction is also expected to finish 2013 with slight growth. Although some segments, such as industrial and warehouse construction and hotel construction, are still dormant, demand for office space is recovering slowly and a number of retail projects are being reactivated. These are likely to push non-residential construction up in 2013.
Meanwhile, residential construction is expected to stabilise in 2013. Low mortgage rates may help the sector recover slightly, but PMR forecast that no increase was likely until 2014.