Romania’s construction work index accelerates to 15% yoy growth in Q3
Romania's construction work volume index increased by 15.1% in the third quarter (Q3) of this year compared to the same period of 2019, according to calculations based on the data released by the National Statistics Institute (INS) on November 16.
September showed the fastest annual growth (+18.7% yoy) since March. The sector's annual increase eased in Q2, during the lockdown period and immediately after, to a still robust double-digit digit rate of 11% yoy - yet far from the average 30% yoy advance in the previous four quarters ending March 2020.
The rebound seen in Q3 is still based on maintenance or capital repairs and not on new projects.
The volume of works on new projects in Q3 marked a certain improvement from Q2, as it advanced by 4.9% yoy compared to the 1.2% yoy contraction in Q2.
However, the capital repair works soared by 65% yoy in Q3 (-47.2% yoy in Q2), and the maintenance and repair work increased by 27% yoy (+36% yoy in Q2).
The figures highlight the developers' caution in launching new projects - or simply they already operate at full capacity, which is visible in certain areas of Bucharest and first-tier cities.
The limitations of their capacity may be multiple, including the workforce, bureaucratic, or technical constraints.
Under another breakdown, the residential sector is constantly doing well (+18% yoy in Q3), and the non-residential buildings sector returned to robust growth in Q3 (+29% yoy) after the coronavirus crisis prompted strategic decisions reflected in the significant slowdown in Q2 (-1.9% yoy).
Meanwhile, the Government ran out of money in Q3 when the civil engineering works advanced by a modest 7% yoy.