Market Trends of Eastern Europe Construction Industry
This section covers the major market trends shaping the Eastern Europe Construction Market according to our research experts:
Increase in Residential Building Permits in Romania:
With the good potential to generate steady, long-term income, capital appreciation and significant diversification benefits, the real estate segment still offers attractive investment opportunities, especially for investors that can cope with lower liquidity. Last year, constructions and real estate transactions contributed with almost one percentage point to Romania's 4% economic growth achieved in the first three quarters of 2019.
Increase in Residential Building Permits in Czech Republic:
The total number of newly started dwellings allowed but not necessarily completed during that time was 27,600 in 2018 (3.6% Year on Year growth). It has been the highest number since 2009. In addition, the number of dwellings started in multi-family buildings increased marginally in 2018 (0.5% Year on Year) and reached 7,300. While this is again the highest number since 2009, it remains almost 50% below the 2008 pre-crisis-level. Construction output in 2018 rose by 8.4% year-on-year in real terms. This represents the highest rate since 2004 supported mainly by building construction, which grew at an 8.6% pace (contribution 6.3 percentage points), but also a solid performance in civil engineering construction, which increased by 8.0% YoY.
