Estonia’s construction sector feeling gloomy

Construction volumes will decrease in 2014
In 2014, construction volumes are expected to fall in Estonia. Current order books are below average, and employment in the sector is expected to decline. Residential construction will continue increasing at recent volumes, whereas non-residential construction and civil engineering works will decline. An increased supply of new or recently renovated apartments will, it is hoped, cool down the prices of real estate. 

Construction prices will stay at around last year’s level
Lower construction volumes and intensified competition will put pressure on construction prices. Maintaining last year’s profitability will be difficult in 2014. Mostly due to a fast increase in wages, construction prices are already above their pre-crisis peak in Estonia. 

Estonia has done better than its neighbours
Construction volumes and prices have increased more in Estonia than in other Baltic or Nordic countries since the last slump in 2009-2010. Public sector orders supported larger construction volumes in Estonia in 2011-2012. In 2013 and 2014, the share of the private sector in enterprises’ order books has increased, while the volume of public procurement projects has declined, mostly due to a gap between the two EU funding periods.

Source: Swedbank

Read more here


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: