Construction volumes in Estonia increase in 3Q13

According to Statistics Estonia, in 3Q13 the production value of construction enterprises in Estonia amounted to €697 million, of which the production value of building construction was €380 million and the production of civil engineering reached €317 million. This represents a 4% and 5% increase y/y, respectively, compared to the same period in 2012. The manufacture of building materials in Estonia has increased by 3.6% m/m compared to September 2013 and 10.6% y/y compared to October 2012. The increase in construction activity is set to boost the cement industry in the country.

Domestic construction market

The growth in the domestic construction market was predominantly caused by the rise in new building construction and was also boosted by civil engineering projects. Repair and reconstruction work in building construction remained stable compared with the previous year.

Foreign construction market

Construction activity in foreign countries, which took a downward turn in 1H13, began to rise in 3Q13. The construction volume of Estonian construction enterprises in foreign countries improved by 2% y/y compared with 3Q12, caused mainly by an increase in building construction. Construction volumes in foreign countries accounted for 8% of the total volume of construction in 3Q13.

New housing

The number of dwelling completions stood at 436, some 50 more than in 3Q12, according to data released by the Register of Construction Works. Approximately half of the completed residences were one-family, two-family or terraced houses and the majority of completed homes were situated in the rural municipalities of Tallinn, Estonia. However, the demand for new housing still remains. In 3Q13 building permits were granted for the construction of a further 784 homes, around a quarter more than were granted in 3Q12. Blocks of flats were the most popular type of building. The number of completed non-residential buildings increased to 223 in 3Q13, with a useful floor area of 176 500 m². This was primarily made up of new storage and agricultural premises.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldcement.com/europe-cis/02122013/construction_volumes_in_estonia_increase_in_3q13_472/