The volume of construction works delivered by Romanian companies in January was 5.8% larger compared to the same month of 2022, the statistics office INS announced.
The state forecasting body expects the construction sector’s growth to halve in 2023, to 6.2% from 12.7% y/y in 2022. However, civil engineering works may keep growing fast, driven by infrastructure projects.
The performance in January falls well behind the double-digit growth rates in the last two quarters of 2022, but the volume of activity in this industry is seasonally low so the impact on the year’s (or even quarter’s) performance is limited.
As regards the segments of the market, growth was backed only by civil engineering works (+17.7% y/y), in line with expectations. The construction of both residential and non-residential buildings contracted by 2.8% y/y and 1.3% y/y respectively.
The non-residential segment may also see reasonable growth rates this year, driven by the expansion of logistic and retail spaces.
Colliers expects the volume of retail projects in Romania to hit a new record this year.
With scheduled deliveries of around 260,000 square metres of modern retail projects, 2023 may turn out to have the heaviest pipeline calendar since 2011, more than triple the deliveries in 2022, according to the annual report published by Colliers.
Most retail categories registered good results in 2022 and the profitability level in Romania remains one of the highest in the European Union, the real estate consultancy form points out. 2022 saw limited deliveries of new modern retail projects, adding to the overall existing retail surface only 77,000 square metres, about half the initially estimated delivery and a substantial decrease from the 102,000 square metres recorded in 2021.