Construction volumes decreased in Q1

According to Statistics Estonia, in the 1st quarter of 2014 compared to the same quarter of the previous year, the total production of Estonian construction enterprises in Estonia and foreign countries decreased 3%. In Estonia construction activities decreased 2%, and the construction volumes of Estonian enterprises in foreign countries decreased by nearly a fifth.

In the 1st quarter of 2014, the production value of construction enterprises amounted to 376 million euros, of which the production value of building construction was 254 million euros and the production of civil engineering totalled 122 million euros. Compared to the 1st quarter of 2013, the volume of building construction in real terms increased 4% and the volume of civil engineering decreased 15%.

The upturn in new building construction on the domestic construction market, which started last year, continued the growth trend at the beginning of this year. The repair and reconstruction work in building construction stayed on the level of the previous year. The construction of civil engineering objects, which supported the construction market positively for nearly three years, has decreased for two quarters in a row and caused a downturn in the whole construction market.

The construction volume of Estonian construction enterprises in foreign countries continued to decrease – there was a decrease in the construction of buildings as well as in civil engineering. Construction volumes in foreign countries accounted for 10% of the total volume of construction in the 1st quarter of 2014 (this share was 12% in the 1st quarter of 2013).

According to the data of the Register of Construction Works, in the 1st quarter of 2014, the number of dwelling completions was 748, i.e. 323 dwellings more than in the same period of 2013. About three quarters of completed dwellings were situated in blocks of flats. The majority of completed dwellings were situated in Tallinn.

There is still a demand for new dwellings with a good location and high quality. In the 1st quarter of 2014, building permits were granted for the construction of 667 dwellings, which is about a tenth more than in the 1st quarter a year ago. The most popular type of building was block of flats.

In the 1st quarter of 2014, the number of completed non-residential buildings was 187 with a useful floor area of 157,700 square metres – this was primarily made up of new storage, office and agricultural premises.

Construction volume index, 1st quarter 2003 – 1st quarter 2014
(average of quarters of 2010 = 100)

Diagram: Construction volume index, 1st quarter 2003 – 1st quarter 2014

 

Source: Statistics Estonia

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