Construction in Romania – Key Trends and Opportunities to 2023

GlobalData’s Construction in Romania – Key Trends and Opportunities to 2023 report provides detailed market analysis, information and insights into the Romanian construction industry, including:

- The Romanian construction industry's growth prospects by market, project type and construction activity

- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Romanian construction industry

- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Construction activity in Romania was weak in 2017 and 2018, due to low public and private sector investments in construction projects, weak consumer and investor confidence and a reduction in fixed capital formation. Consequently, the construction industry contracted by 1.3% and 5.8% in real terms in 2017 and 2018 respectively.

The Romanian construction industry is expected to recover in 2019, with the industry’s output expected to register a growth of 1.3% in real terms that year. The industry has got off to a good start in 2019; in the first two months of the year (the latest data available at the time of writing), construction works index grew by 4.8% year-on-year, with new construction growing by 8.7% year-on-year.

This momentum is expected to continue throughout the early part of the forecast period (2019–2023), supported by a revival in public sector investments in infrastructure, coupled with financial assistance provided by the European Union (EU) to develop the country’s overall infrastructure. The industry’s output is also expected to be supported by improvements in business confidence over the forecast period, which will drive investment in infrastructure, commercial and residential projects and energy infrastructure. In the 2019 draft budget, the government announced plans to allocate RON11.6 billion (US$2.9 billion) to the Ministry of Transport. The focus on the development of renewable energy infrastructure is also expected to drive industry growth.

The industry’s output value in real terms is expected to post a compound annual growth rate (CAGR) of 3.37% over the forecast period.

Key Highlights

- GlobalData expects the residential construction market to account for 30.6% of the industry’s total value in 2023, driven by public and private sector investments in the construction of new residential buildings, in order to meet the demand for housing. The government plans to construct 6,990 affordable housing units under the Rental Housing Construction for Young People Program 2016–2020.

- Infrastructure construction market’s forecast-period growth will be driven by the government’s plan to develop and modernize the country’s transport infrastructure. The government is focusing on developing transport infrastructure to improve the mobility of people and services, support economic growth and decrease transport costs. An investment of RON167.3 billion (US$42.4 billion) is required until 2030 to expand and upgrade the country’s transport infrastructure.

- GlobalData expects the energy and utilities construction market to register a forecast-period CAGR of 11.36% in nominal terms in 2023, driven by the government’s focus on renewable energy. The government aims to generate 27.9% of the country’s total energy consumption through renewable sources by 2030 under the draft National Energy and Climate Plan

- The Romanian construction industry is expected to be supported by EU funds to help develop the country’s overall infrastructure. In April 2019, the European Commission approved investment worth RON9.3 billion (US$2.3 billion) under the EU Cohesion Policy to develop infrastructure in Romania. Accordingly, various projects will be implemented across the country in the areas of transport, energy, health education, water, housing, communication and welfare development.

- The total construction project pipeline in Romania – as tracked by GlobalData, and including all mega projects with a value above US$25 million – stands at RON406.5 billion (US$103.1 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards early-stage projects, with 60.4% of the pipeline value being in projects in the pre-planning and planning stages as of May 2019.

Scope

This report provides a comprehensive analysis of the construction industry in Romania. It provides -

- Historical (2014–2018) and forecast (2019–2023) valuations of the construction industry in Romania, featuring details of key growth drivers.

- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector

- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.

- Listings of major projects, in addition to details of leading contractors and consultants

Reasons to buy

- Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.

- Assess market growth potential at a micro-level with over 600 time-series data forecasts.

- Understand the latest industry and market trends.

- Formulate and validate strategy using GlobalData's critical and actionable insight.

- Assess business risks, including cost, regulatory and competitive pressures.

- Evaluate competitive risk and success factors.

Companies mentioned

Table of Contents

Table of Contents

1 Executive Summary

2 Construction Outlook: At-a-glance

3 Latest News and Indicators

4 Key Drivers and Risks

4.1. Economic Performance

4 ...

Table of Contents

1 Executive Summary

2 Construction Outlook: At-a-glance

3 Latest News and Indicators

4 Key Drivers and Risks

4.1. Economic Performance

4.2. Political Environment

4.3. Demographics

4.4. Risk Profile

5 Construction Outlook

5.1. All Construction

5.1.1. Outlook

5.1.2. Project analytics

5.2. Commercial Construction

5.2.1. Outlook

5.2.2. Project analytics

5.3. Industrial Construction

5.3.1. Outlook

5.3.2. Project analytics

5.4. Infrastructure Construction

5.4.1. Outlook

5.4.2. Project analytics

5.5. Energy and Utilities Construction

5.5.1. Outlook

5.5.2. Project analytics

5.6. Institutional Construction

5.6.1. Outlook

5.6.2. Project analytics

5.7. Residential Construction

5.7.1. Outlook

5.7.2. Project analytics

6 Key Industry Participants

6.1. Contractors

6.2. Consultants

7 Appendix

7.1. What is this Report About?

7.2. Definitions

8 About GlobalData

8.1. GlobalData at a Glance

8.2. GlobalData Construction

8.3. Disclaimer

8.4. Contact Us

1 Executive Summary

2 Construction Outlook: At-a-glance

3 Latest News and Indicators

4 Key Drivers and Risks

4.1. Economic Performance

4.2. Political Environment

4.3. Demographics

4.4. Risk Profile

5 Construction Outlook

5.1. All Construction

5.1.1. Outlook

5.1.2. Project analytics

5.2. Commercial Construction

5.2.1. Outlook

5.2.2. Project analytics

5.3. Industrial Construction

5.3.1. Outlook

5.3.2. Project analytics

5.4. Infrastructure Construction

5.4.1. Outlook

5.4.2. Project analytics

5.5. Energy and Utilities Construction

5.5.1. Outlook

5.5.2. Project analytics

5.6. Institutional Construction

5.6.1. Outlook

5.6.2. Project analytics

5.7. Residential Construction

5.7.1. Outlook

5.7.2. Project analytics

6 Key Industry Participants

6.1. Contractors

6.2. Consultants

7 Appendix

7.1. What is this Report About?

7.2. Definitions

8 About GlobalData

8.1. GlobalData at a Glance

8.2. GlobalData Construction

8.3. Disclaimer

8.4. Contact Us

List of Tables

List of Tables

Table 1: Construction Outlook

Table 2: Romania, Key Economic Indicators

Table 3: Romania, Construction Output Value (nominal, RON Million)

Table 4: Romania ...

List of Tables

Table 1: Construction Outlook

Table 2: Romania, Key Economic Indicators

Table 3: Romania, Construction Output Value (nominal, RON Million)

Table 4: Romania, Construction Output Value (nominal, US$ Million)

Table 5: Romania, Top Commercial Construction Projects by Value

Table 6: Romania, Top Industrial Construction Projects by Value

Table 7: Romania, Top Infrastructure Construction Projects by Value

Table 8: Romania, Top Energy and Utilities Construction Projects by Value

Table 9: Romania, Top Institutional Construction Projects by Value

Table 10: Romania, Top Residential and Mixed-Use Construction Projects by Value

Table 11: Romania, Key Contractors

Table 12: Romania, Key Consultants

Table 13: GlobalData Construction Market Definitions

Table 14: Construction Risk Index Ratings and Scores

List of Figures

List of Figures

Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix

Figure 2: Romania, Construction Projects Pipeline by Sector (RON Billion)

Figure ...

List of Figures

Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix

Figure 2: Romania, Construction Projects Pipeline by Sector (RON Billion)

Figure 3: Romania, Residential Building Permits (Total Numbers)

Figure 4: Romania, Risk Profile

Figure 5: Romania, Risk Comparison

Figure 6: Romania, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate)

Figure 7: Romania, Construction Output Value, Growth Matrix

Figure 8: Romania, Construction Output Value, by Sector (RON Million), 2014–2023

Figure 9: Romania, Construction Projects Pipeline, Projected Annual Spending by Stage (RON Million), 2018–2023

Figure 10: Romania, Construction Projects Pipeline, Value by Stage (RON Million)

Figure 11: Romania, Commercial Construction Output by Project Type (RON Million), 2014–2023

Figure 12: Romania, Commercial Construction Projects Pipeline, Value by Stage (RON Million)

Figure 13: Romania, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (RON Million), 2018–2023

Figure 14: Romania, Industrial Construction Output by Project Type (RON Million), 2014–2023

Figure 15: Romania, Industrial Construction Projects Pipeline, Value by Stage (RON Million)

Figure 16: Romania, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (RON Million), 2018–2023

Figure 17: Romania, Infrastructure Construction Output by Project Type (RON Million), 2014–2023

Figure 18: Romania, Infrastructure Construction Projects Pipeline, Value by Stage (RON Million)

Figure 19: Romania, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (RON Million), 2018–2023

Figure 20: Romania, Energy and Utilities Construction Output by Project Type (RON Million), 2014–2023

Figure 21: Romania, Energy and Utilities Construction Projects Pipeline, Value by Stage (RON Million)

Figure 22: Romania, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (RON Million), 2018–2023

Figure 23: Romania, Institutional Construction Output by Project Type (RON Million), 2014–2023

Figure 24: Romania, Institutional Construction Projects Pipeline, Value by Stage (RON Million)

Figure 25: Romania, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (RON Million), 2018–2023

Figure 26: Romania, Residential Construction Output by Project Type (RON Million), 2014–2023

Figure 27: Romania, Residential Construction Projects Pipeline, Value by Stage (RON Million)

Figure 28: Romania, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (RON Million), 2018–2023

Figure 29: Romania, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 30: Romania, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor)

Figure 31: Romania, Headquarters of Key Consultants (% of Total Project Pipeline)

Figure 32: Romania, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants)

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