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ANALISYS: Revival of demand for construction solutions and systems
English Section Publicat de Ovidiu Stefanescu 19 Iun 2015 14:07
Sales of building materials in Romania have placed on a growing trend in the first three months of this year, while the increase in terms of volume of construction works was around 12.5%, in the same period. Moreover, the forecasts of the managers in the field indicate a clear upward trend in demand, given the relatively high number of large projects launched or announced in Romania as against to the same period in 2014. According to the experts of professional associations and based on the information provided by official statistical institutions, the analyzed market is valued at around 3.3 billion euro in 2014, and nowadays has a lot to recover in order to reach the previous record level of 5 billion euro, which was registered before the recession start. After a drop of 7% in 2014 compared to the previous year, in January 2015 the construction industry have increased significantly, by 22% compared to December 2014, followed by the best developments in February and March. Market renovations and repairs remained at a constant level, recording 30% share of the total construction sector, while activity in infrastructure sector resumed but at a lower pace. There are international experts which consider that the relatively low wages and an educated workforce make Romania an attractive destination for foreign direct investment. According to their opinion, the country’s EU membership has deepened trade and capital market integration, fostering continued convergence with other members of the bloc. These elements could provide a strong momentum for an accelerated development of local construction industry, given the fact this sector is one of the most important "engines" of the national economy. It must be emphasize the fact that a flexible currency and limited private sector indebtedness offer some space for official Romanian policymakers to stimulate growth and to guarantee a sustainable growth in the next period. One of the main incentives remains the European strategy in energy efficient policy, which could provide a strong stimulus for construction sector.
 
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