The European International Federation of Builders recently published country analyses on construction activity. The analysis for Romania in 2023 starts with the observation that the Gross Domestic Product estimated for 2023 was at current prices of 323,173.25 billion Euros, showing a real increase of 2.1% compared to 2022.

Net Investments

The contribution of construction to GDP growth in 2023 increased by 0.8%, accounting for 8.1% in GDP formation, and the volume of activity grew by 11.0%.

In 2023, net investments in the national economy amounted to 38,278.80 million Euros, an increase of 16.6% compared to 2022. Increases were recorded across all structural elements: new construction works by 16.8%, machinery (including transport equipment) by 20.6%, and other expenses by 4%.

In Q4 2023, net investments in the national economy reached 14,513.86 million Euros, up by 22.1% compared to Q4 2022.

In December 2023, compared to December 2022, the volume of construction works increased by 27.3% in gross terms and by 25.5% adjusted for working days and seasonality.

In 2023 compared to 2022, the total production volume in construction increased by 14.2% in gross terms.

By type of construction, increases were recorded in major repairs (+19.7%), new buildings (+16.5%), and current maintenance and repairs (+6.0%).

By types of construction, there were increases in civil engineering (+33.2%) and non-residential buildings (+2.3%). Residential buildings decreased by 6.6%.

The volume of construction adjusted for working days and seasonality increased by 13.8%, with increases in major repairs (+21.5%), new buildings (+15.8%), and current maintenance and repairs (+6.6%). Among types of construction, there were increases in civil engineering (+32.7%) and non-residential buildings (+2.3%). Residential buildings decreased by 5.9%.

In 2023, net investments in the national economy amounted to 189,346.1 million lei, an increase of 16.6% compared to 2022. The evolution of net investments in the national economy, by structural elements compared to 2022,

Residential Construction

In 2023, 34,646 building permits were issued for housing, 20.6% fewer than in 2022.

Decreases were recorded in all development regions: Bucharest-Ilfov (-1,648 permits), South-Muntenia (-1,575), Northwest (-1,499), West (-1,062), Southeast (-1,018), Northeast (-1,014), Southwest Oltenia (-746), and Center (-452).

In December 2023, 2,550 building permits were issued for housing (-5.6% compared to November 2023), with a total useful area of ​​786,693 sqm (+24.3%).

Of the total number of building permits for housing, 69.3% are for rural areas. In December 2023, there was a decrease in the number of building permits issued for residential buildings compared to the previous month (-150 permits).

In 2023, 71,454 dwellings were completed, 1,878 fewer than in 2022. The situation by residence in 2023 compared to 2022 shows a decrease in the proportion of completed dwellings in rural areas (from 45.3% in 2022 to 2023% in) and an increase in urban areas (from 54.7% in 2022 to 61.0% in 2023).

The breakdown of completed dwellings by funding sources shows that in 2023 compared to 2022, the number of dwellings completed with private funding decreased (-2,466 dwellings), while the number of dwellings completed with public funding increased (+588 dwellings).

Regional distribution in 2023 compared to 2022 shows a decrease in the number of dwellings completed in the following development regions: Northwest (-1,357 dwellings), West (-945), Bucharest-Ilfov (-280), Center (-159). ) and South-Muntenia (-158). Growth was recorded in the following development regions: Southeast (+761 dwellings), Northeast (+246), and Southwest Oltenia (+14).

In 2023, 34,646 building permits were issued for residential buildings, of which 93.7% were for housing. Most building permits for single-family houses were issued in rural areas, i.e., 23,030 permits, while the remaining 9,445 permits were issued in urban areas. There were 32 building permits issued for collective housing.

Non-Residential Construction

For non-residential buildings, a total of 6,448 building permits were issued, and the useful area for which building permits were issued increased to 4,033,925 sqm from 3,785,101 sqm in 2022.

Compared to December 2022, in December 2023 there was a decrease in the number of building permits issued for non-residential buildings (-17.7%) and an increase in the total useful area (+11.6%).

Civil Engineering

The value of contracted construction works, in nominal terms, for new civil engineering works amounted to 11,837.7 million euros in 2023, up from 7,356.54 million euros in 2022. For major repairs - civil engineering, the value increased to 1,908.42 million euros in 2023, and for current repairs to 4,125.31 million euros.

Construction Material Prices

Following significant price increases in major construction materials in 2021 and 2022, many prices decreased in 2023. According to data provided by the National Institute of Statistics, the evolution of prices for major materials was as presented in the chart above. (Photo: Dreamstime)