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2018 Construction in Romania - Key Trends, Growth, Research, Analysis and Opportunities Share

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Albany, NY -- (SBWIRE) -- 12/24/2014 -- Synopsis

This 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 type of construction activity

Analysis of equipment, material and service costs across each project type in Romania

Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Romanian construction industry

Profiles of the leading operators in the Romanian construction industry.

Data highlights of the largest construction projects in Romania

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Executive summary

The Romanian construction industry increased in value at a compound annual growth rate (CAGR) of 3.78% in nominal terms during the review period (2009–2013). Industry growth is expected to continue over the forecast period (2014–2018) as a result of both the government's focus on developing physical and social infrastructure, and an anticipated recovery in the global economy. According to Banca Na?ional? a României, the national bank of Romania, foreign direct investment (FDI) in construction and real estate grew by 7.7% from RON24.4 billion (US$7.0 billion) in 2012 to RON25.9 billion (US$7.8 billion) in 2013. FDI in construction and real estate, as a percentage of total FDI, rose from 9.2% in 2012 to 9.8% in 2013, an increase of 6.5%. The increased FDI and improving consumer and investor sentiment will drive growth, and the industry is expected to post a nominal forecast-period CAGR of 1.78%.

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

Historical (2009-2013) and forecast (2014-2018) valuations of the construction industry in Romania using construction output and value-add methods

Segmentation by sector (commercial, industrial, infrastructure, institutional and residential) and by project type

Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)

Analysis of key construction industry issues, including regulation, cost management, funding and pricing

Detailed profiles of the leading construction companies in Romania

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Identify and evaluate market opportunities using Timetric'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 business strategies using Timetric's critical and actionable insight

Assess business risks, including cost, regulatory and competitive pressures

Evaluate competitive risk and success factors

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Key highlights

The Romanian government plans to invest RON27.8 billion (US$7.9 billion) to construct 656km of new highways by 2030 under the General Transport Master Plan. The government's focus on road infrastructure development is expected to support economic growth and improve road connectivity.

Waste-processing plants construction is expected to record healthy growth over the forecast period, driven by a number of ongoing projects. In May 2014, the National Agency for Radioactive Waste (ANDR) announced plans to construct a new nuclear waste repository in Saligny, near the Cernavoda nuclear power plant, by 2020 with an expected initial investment of RON177.0 million (US$50.0 million). Investments such as these are expected to support growth in the waste-processing plants category over the forecast period.

Political stability, good air connectivity and a well-established real estate market are expected to support construction activity in the office buildings category over the forecast period. In August 2014, real estate developer Portland Trust announced plans to develop 70,000m2 of office space, comprising three buildings with six floors each in the Pipera area of Bucharest. Total investment in this project is estimated at between RON441.6 and 662.3 million (US$125.3 and 187.8 million); the first two buildings are expected to be completed in 2016. This is expected to support growth in the office buildings category over the forecast period.

In September 2014, Warehouses DePauw (WDP), a Belgian real estate company, announced plans to construct a 7,000m2 logistics project in Ploie?ti. The total investment for this project is anticipated to be RON17.7 million (US$5.0 million), with completion scheduled for 2015. This will help to support growth in the industrial construction market over the forecast period.

According to the European Commission, the Romanian government increased its budget expenditure on the education sector by 10.4% from RON18.1 billion (USD5.2 billion) in 2012 to RON20.0 billion (US$5.9 billion) in 2013. This will contribute to the expansion of educational infrastructure over the forecast period.

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