Romania’s construction sector keeps growing on repair and maintenance
The construction works volume index in Romania rose by 12.3% in August, compared to the same period last year. However, the works on new projects (new constructions) edged up by only 1.2%.
The robust annual growth was driven by more capital repairs works (+67% year-on-year) and maintenance works (+27% yoy).
The pattern has been visible since April - the first full month under the state of emergency, which allowed landlords to carry such capital repairs works in the buildings left empty.
At the same time, the slow increase in works on new projects reflects operational problems caused by the lockdown and a more cautious approach from investors, some of whom have reconsidered their projects in the sectors of offices and retail buildings.
For the entire March-August period, the volume of works on new construction projects increased by 2.3% compared to the same period last year. In contrast, the volume of capital repair works surged by 55% yoy, and the maintenance works rose by 40% yoy.
By type of construction, civil engineering (mostly infrastructure) works slowed down since June to +4.2% yoy in August. For the entire March-August period, the slower growth was in the non-residential buildings sector (+8.1% yoy).
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