Construction volumes increased about a fourth in the previous year

According to the preliminary data of Statistics Estonia, in 2012 the total production of Estonian construction enterprises in Estonia and in foreign countries amounted to 2.1 billion euros, which is 19% more than a year earlier. Construction volumes increased for the second year in a row.

The production value of building construction was 1.2 billion euros and the production of civil engineering works totalled 849 million euros. Compared to 2011, the volume of building construction in real terms increased by 20% and the volume of civil engineering by 16%. The growth is caused mainly by repair and reconstruction work of buildings and was also supported by the civil engineering works. Despite the high growth rates during the last two years, the volume of the construction market in real terms is comparable with the years 2006 and 2008 and remained by more than a sixth smaller than in 2007, the most successful year on the construction market so far.

In 2012, the construction volume of Estonian construction enterprises in foreign countries increased 13%. The growth was mainly caused by building construction. Construction volumes in foreign countries accounted for 11% of the total volume of construction.

The completion of new dwellings which had stayed on decline trend for four years started to grow again in the previous year. According to the data of the Construction Works Register, the number of dwellings completed in 2012 was 1,990, i.e. 72 dwellings more than in 2011. Similarly to the previous years the largest share of completed dwellings was situated in blocks of flats and every second dwelling had two or three rooms. Since 2008, the share of dwellings situated in blocks of flats has continually decreased, which has increased the average floor area per dwelling. In 2012, the average floor area of a completed dwelling was 117 square metres. The majority of completed dwellings were situated in Tallinn, followed by the neighbouring rural municipalities of Tallinn, and Tartu county.

In spite of consumers’ price sensitivity, the demand for new dwellings with good location and quality has continued. Several new developments have appeared on the market, especially among higher buildings (six or more storeys), the construction of which had practically stopped in the intervening years. In 2012, building permits were granted for the construction of 3,035 dwellings, which is nearly a tenth more than a year earlier.

In 2012, the number of completed non-residential buildings was 840 with the total useful floor area of 474,000 square metres – this was primarily made up of new agricultural, commercial and storage premises. Compared to 2011, there was an increase in both the useful floor area and the cubic capacity of completed non-residential buildings.

In the 4th quarter of 2012, the production value of construction amounted to 563 million euros, which is 9% more than in the 4th quarter of 2011, whereas the construction of buildings increased by 16% and the construction of civil engineering works stayed on the same level.

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2012 was a successful year for the businesses

According to the preliminary data of Statistics Estonia, in 2012 the total profit of the business sector was 2.9 billion euros, which was 7% more than a year earlier. The increase of enterprise sector’s net sales, productivity and total profit continued for the third year in a row.

Compared to 2011, the total profit increased in almost all economic activities. The biggest contribution to the increase in the total profit was made by activities mainly relying on domestic consumption – construction, real estate, administrative and support services and retail trade. The growth in the profit of the business sector was negatively influenced mostly by the energy and manufacturing activities. The profit of manufacturing, which holds the biggest share in the total profit of the business sector, decreased 6% compared to 2011, first of all due to the decrease of profits in the manufacture of electronics, wood and metal products.

In 2012, enterprises sold goods and services for 46.3 billion euros, which was 10% more than a year earlier. The net sales of wholesale and retail trade and manufacturing, which have the biggest share in the gross net sales of the total business sector, increased 10% and 4%, respectively.

Compared to 2011, enterprises’ total costs increased 10%. Personnel expenses increased 11%. The number of persons employed as well as the number of hours worked increased 4%. Labour productivity on the basis of value added of the business sector increased 5%, amounting on an average to 20,000 euros per person employed in a year.

The growth in enterprises’ investments continued for the second year in a row. In 2012, enterprises invested 2.7 billion euros, which is 12% more than in 2011. As in 2011, the biggest investments were made in equipment and machinery and in the construction and alteration of buildings. The biggest investors were energy, manufacturing and transportation and storage enterprises with a half of the total investments of enterprises. Compared to 2011, only investments in vehicles and computers decreased. Other investments increased, investments in land increased the most (37%).

In the 4th quarter of 2012, enterprises’ net sales of goods and services totalled 12.1 billion euros, which at current prices was 8% more than in the same period of 2011. In the 4th quarter of 2012, enterprises invested 874 million euros, i.e. 18% more than in the 4th quarter of 2011.

Read more from Statistics Estonia

Let’s Do cleanup action takes place 4 May

Registration started on Wednesday for the day of civil actions under the title Let’s Do It that will take place this year on 4 May, the first Saturday of May as usual. All people and organisations in Estonia wishing to take part in the event are welcome to register on the website at www.teemeara.ee.

The action’s leader, Estonian Fund for Nature board member Tarmo Tüür, said he was glad that the national cleanup day was becoming an annual day of caring. “The first Saturday of May has emerged as a day that unites Estonia, unites town and country, unites different generations, different walks of life, different views on life, people of different ethnicities,” Tüür said.

A starter kit will once again be distributed to all event leaders this year containing first aid equipment, a supply of work gloves, a can of paint, a crisis manual, a badge for the event leader, a handful of chocolates, a few stickers, a CD with stories from previous events, and a special newspaper focusing on pieces of advice and entertainment.

On last year’s cleanup day, 5 May 2012, 1 241 events were held all over Estonia and 32 000 people took part in them.

Source: Estonian Review

Ryanair to fly to Bremen and Frankfurt from Tallinn

The low cost carrier Ryanair will on 2 April resume flights between Tallinn and Bremen and Tallinn and Frankfurt Hahn. From 31 March onwards, Ryanair will fly to Tallinn from London Stansted instead of Luton, it appears from the Ryanair website.

Flights between Tallinn and Dublin will resume on 16 March, flights between Tallinn and Girona, near Barcelona, and between Tallinn and Manchester on 25 March, and between Tallinn and Dusseldorf Weeze and Tallinn and Stockholm Skavsta on 26 March.

In October and November 2012 Ryanair halted flights for the winter on seven out of its ten operations to Tallinn. The flights not discontinued were from London Luton, Oslo Rygge and Milan Bergamo.

Source: BNS through Estonian Review

An Estonian household member spends 289 euros per month

The compulsory expenditure or expenditure on food and dwelling accounted for 45% of the budget, remaining on the same level as in 2011. In 2012, a household member spent on food and non-alcoholic beverages 79 euros per month, which accounted for 27% of the total expenditure. Compared to the previous year, the expenditure on food increased nearly 5%. Expenditure on dwelling per household member amounted to over 51 euros per month (18% of the household budget), which was 4 euros more than in 2011.

Expenditure on transport (incl. public transport tickets, motor fuel, oil) totalled 36 euros, on leisure time 27 euros, on communication services 16 euros, on housekeeping 16 euros, on clothing and footwear 14 euros and on health 10 euros per month per household member. Compared to the previous year, the expenditure on transport has increased the most – a household member spent on transport 16% more than in 2011. Households have also started to spend more on health, clothing and footwear, household equipment, eating out and spending leisure time (incl. travelling).

In urban areas a household member spent on average 296 euros per month and in rural areas the respective indicator was 273 euros. A household member in urban areas spent on average 18 euros more on dwelling than a household member in rural areas, the share of dwelling in total expenditure accounted for 19% in urban and 14% in rural areas. Expenditures on food, clothing and footwear, leisure time, health and eating out were also larger in urban areas. On the other hand, rural households spent 15% of their budget on transport, in urban areas the expenditure on transport accounted for 11% of the household budget.

By counties, the expenditures of households were the biggest in Harju county (335 euros per month per household member) and Tartu county (328 euros per month per household member). The smallest expenditures were in households of Ida-Viru county, Valga county and Põlva county (respectively 200, 209 and 217 euros per month per household member).

More detailed overview has been provided in the blog of statistics (only in Estonian).

The estimates are calculated according to the data of the Household Budget Survey conducted by Statistics Estonia. In 2012, more than 3,500 households participated in the survey. Household is a group of persons who live at the same address and share joint financial resources and whose members consider themselves to be members of one household, while family is based on relationship or kinship. In 2012, nearly 600,000 households lived in Estonia and the average size of a household was 2.2 persons.

Mortgage payments, real estate purchases, financial investments, expenses on major repairs or construction and other investments are not taken into account as household’s consumption expenditures.

The Household Budget Survey is carried out by statistical organisations of all European Union Member States on the basis of the harmonised methodology.

Source: Statistics Estonia

Investors sue Estonian real estate developer over Moroccon project

Spanish company Property Logic behind which is Estonian businessman Margus Reinsalu and that was developing a luxury real estate project in Morocco has been sued by about 50 foreign investors, writes Eesti Ekspress.

Property Logic is developing Le Jardin de Fleur, a luxury residential development for 1,250 housing units in Saidia, a Moroccon resort on the Mediterranean beach in Morocco.

Investeors claim that the project which raised about 60 million euros in prepayment is stalled and fear that they could lose their investment.

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