The construction works volume index shrank by 0.2% y/y in 2012, turning negative area after the 2.8% y/y growth in 2011. The construction works dynamics recorded encouraging performance in H1, but the activity in the sector weakened abruptly in the second half of the year, affected by the political turmoil in Jul-Aug and further by the government’s decision to cut public funding for infrastructure in the autumn budget adjustment.
The real estate market appear to have stabilised at low levels in 2012. The value of real estate transactions inched up by approximately 6.3% y/y last year, but the total remains below EUR 1bn annual average in the pre-crisis years. Investors and developers maintain cautious as most projects are currently financed through their own resources, yet the retail segment remains dynamic and new schemes continue to emerge.
Learn more from our Intellinews report: Romania Construction and Real Estate Sector