Our News

– **Growth and Contributions to GDP:**
– Construction industry in Romania contributed 5.95% to the country’s GDP in 2006.
– Business Monitor International forecasted an average industry growth rate of 6.84% over the 2007-2011 period.
– Foreign institutions like European Bank for Reconstruction and Development (EBRD) and European Investment Bank (EIB) have been funding the construction industry.
– Efforts by the Romanian Ministry of Environment and Water Management to align environmental standards with European standards.
– Ongoing projects like the Bucharest-Brasov motorway construction attracting interest from foreign companies.

– **Challenges and Risks:**
– Rising budgetary deficit impacting availability of funds for the infrastructure sector.
– Despite drawbacks, Romania ranked 12th out of 13 states in Emerging Europe for the infrastructure business environment.
– Construction industry forecasted to reach a value of RON36.2 billion (US$13.41 billion) by 2011.
– Significant decline in construction output in 2009 and 2010 due to the crisis.
– Growth in the construction market not expected to return until 2012.

– **Forecasts and Market Stabilization:**
– PMR Ltd released a report forecasting stabilisation and return to the overall construction market in 2012.
– Civil engineering construction in Romania performed better in 2011 compared to residential and non-residential segments.
– Increased capital expenditure on infrastructure projects, especially road and railway construction, driving growth in civil engineering.
– Value of civil engineering works increased by nearly 16% in 2011, reaching RON 35 billion (€8.3 billion).
– Construction sector expected to see improvements in the coming years.

– **Investor Interest and Foreign Funding:**
– Romania has become a popular choice for British property investors.
– Romania ranked ninth in the Global Emerging Markets Index for property purchases.
– House prices in Romania have seen significant increases in recent years.
– Interest rate dropped from 154% in 1997 to 8.9% in 2005.
– Foreign companies like Siemens, AES Corporation, and Societe Bancaire Private showing interest in electrical production capacities in Romania.

– **Market Recovery and Future Prospects:**
– Romanian construction industry was vibrant in the EU before the crisis.
– Construction output fell by 15% in 2009.
– Market stabilization expected in 2011, with growth likely to return in 2012.
– Despite economic downturn in 2009 and 2010, civil engineering works maintained value.
– Positive forecasts for the construction sector in Romania for the upcoming years.