Residential construction is booming in Romania according to figures released by the National Institute of Statistics.
The whole construction market has shown positive development in the first quarter of 2018 and is expected to reach a turnover of RON 30 billion this year, which would be over RON 3 billion more than in 2016, a ten per cent increase.
Residential construction was the most dynamic segment last year in terms of the number of construction permits, where the volume of constructions increased by 69.7 per cent. In 2017, 41,603 construction permits were released for residential buildings.
Construction firms have optimised investments and the residential construction sector stood out the most on the basis of growing demand. Investments in this segment will see a positive dynamic in the following period as well, as both Romanians and overseas property investors are becoming more interested in Romanian real estate.
In addition to the residential construction boom, the first two months of 2018 show a growth of engineering constructions and non-residential buildings by 34.3 per cent and 17 per cent respectively, another sign that the market is accelerating in this segment as well, after a relative stagnant period in the last 2-3 years.
Office and industrial space constructions are also growing, as the construction boom includes all areas.
The most activity and therefore largest turnovers in the construction market were made by companies in the Bucharest area and in cities like Cluj-Napoca, Timisoara, Brasov and Ploiesti.
According to data from the National Institute of Statistics, the volume of construction works has grown by 8.4 percent in the first two months of 2018, with a significant evolution in all segments.
It seems that Romania is building its way out of the problems caused by the global financial crisis. Overseas property investors may want to look at building their own Romanian property portfolios.