The volume of construction works in Romania increased by 6.5% y/y in the first quarter of the year, after the market posted less impressive performances in the second half of last year, according to data published by the statistics office INS.
Seasonally, the construction activity is subdued during the first quarter of the year thus the bright Q1 performance will not weigh much in the full-year performance of the year, which remains complicated for a market that faces both rising prices and in principle weaker demand driven by rising interest rate
On the upside, both the households and investors faced with high inflation expected to persist for at least another year may see real estate assets as a safer option for placing their savings and resources, which would keep the sector active at least for a while.
In Q1, the seasonally-adjusted construction works index advanced by 9.5% compared to the last quarter of 2021 (q/q), boasting the strongest quarterly growth since the outbreak of the pandemic.
Both segments of residential and non-residential buildings posted robust annual growth rates in excess of 18% y/y — while the volume of civil engineering works, reflecting the dynamics of the state-financed infrastructure projects, contracted by 6.5% y/y.