The growth in the volume of construction works in Romania accelerated to 35.4% y/y in Q3 from 30.8% y/y in Q2, and 11.7% y/y in Q1, according to data published by the statistics office INS. The sector has turned into a significant growth driver, particularly as industry is losing momentum (and in fact contracted in Q3, in gross output terms).
The activity in the construction sector thus increased by 27.9% in January-September on average. In 2018, the volume of construction work reported by companies in the sector contracted by 4.1% compared to 2017, after even steeper declines in 2016-2017.
In the third quarter of this year, all three segments of the market (residential buildings, non residential buildings and civil engineering) boasted annual growth rates in excess of 30% year-on-year.
For the January-September period, the construction of non residential buildings (including industrial and logistics spaces but also shopping malls and office buildings) boasted the strongest growth rate: 38.3% y/y, compared to 32.1% y/y growth in the residential buildings segment and a more modest 20% y/y advance in the civil engineering segment that depends on the public budget.
All the three segments of the market are particularly active, but the residential segment had already gained momentum in previous years and the growth rates are lower (compared to the logistics, industrial and office segment that is the most active) while the civil works segment remains sluggish amid insufficient public resources.