Construction volumes decreased in 2Q

According to Statistics Estonia, in the 2nd 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 4%. The construction volumes have decreased for three quarters in a row.

In the 2nd quarter of 2014, the production value of construction enterprises amounted to 539 million euros, of which the production value of building construction was 337 million euros and the production of civil engineering totalled 202 million euros. Compared to the 2nd quarter of 2013, the volume of building construction in real terms increased 2% and the volume of civil engineering decreased 13%.

The upturn in new building construction on the domestic construction market, which started last year, continued the growth trend in the first half 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 had driven the construction market for nearly three years, has decreased for three quarters in a row and caused a downturn also in the whole construction market.

The construction volume of Estonian construction enterprises in foreign countries stayed the same compared to the 2nd quarter of the previous year, influenced mainly by the construction of buildings. Construction volumes in foreign countries accounted for 8% of the total volume of construction in the 2nd quarter of 2014.

According to the data of the Register of Construction Works, in the 2nd quarter of 2014, the number of dwelling completions was 631, i.e. 147 dwellings more than in the same period of 2013. More than a half of the 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 2nd quarter of 2014, building permits were granted for the construction of 1,333 dwellings, which is a half more than in the 2nd quarter a year ago. The most popular type of building was block of flats.

In the 2nd quarter of 2014, the number of completed non-residential buildings was 212 with a useful floor area of 130,100 square metres – this was primarily made up of new industrial, commercial and storage premises.

Construction volume index and its trend, 1st quarter 2003 – 2nd quarter 2014
(average of quarters of 2010 = 100)

Diagram: Construction volume index and its trend, 1st quarter 2003 – 2nd quarter 2014

 

Source: Statistics Estonia

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