Market Research Report
Eastern Europe Construction Market - Growth, Trends, and Forecast (2020 - 2025)
|Published by||Mordor Intelligence LLP||Product code||937902|
|Published||Content info||120 Pages
Delivery time: 2-3 business days
|Eastern Europe Construction Market - Growth, Trends, and Forecast (2020 - 2025)|
|Published: May 1, 2020||Content info: 120 Pages||
The Eastern Europe Construction Market is estimated to grow at a CAGR of approximately 7% during the forecast period.
The European construction market is expected to continue with an average annual growth of more than 3% relative to the weakest building sector (+ 1%). At the country level, the positive development in Eastern European countries will be supported by strong growth of around +6%.
Prime real estate investors are looking to new prospects for the developing markets in Eastern Europe. Cities like Budapest, Prague, and Warsaw show strong signs of growth and attract buyers who are comfortable with some risk, especially in Hungary's prime markets, where the political climate has introduced a degree of uncertainty.
A common trend among these rising Eastern European markets is that demand comes mainly from domestic consumers, suggesting an increasing number of international consumers are involved in this year's investment. Such global markets are home to a growing number of high-end inventories, and many Eastern European cities will see the luxurious new technologies launch in 2020. In recent years, many luxury high-rises have gone up in Warsaw. Prime real estate investors are awaiting the completion of Foksal 13/15, a property from the 19th century that was the residence of many prominent Poles and has been renovated to house luxury apartments.
Increase in Residential Building Permits in Romania:
With the good potential to generate steady, long-term income, capital appreciation and significant diversification benefits, the real estate segment still offers attractive investment opportunities, especially for investors that can cope with lower liquidity. Last year, constructions and real estate transactions contributed with almost one percentage point to Romania's 4% economic growth achieved in the first three quarters of 2019.
Increase in Residential Building Permits in Czech Republic:
The total number of newly started dwellings allowed but not necessarily completed during that time was 27,600 in 2018 (3.6% Year on Year growth). It has been the highest number since 2009. In addition, the number of dwellings started in multi-family buildings increased marginally in 2018 (0.5% Year on Year) and reached 7,300. While this is again the highest number since 2009, it remains almost 50% below the 2008 pre-crisis-level. Construction output in 2018 rose by 8.4% year-on-year in real terms. This represents the highest rate since 2004 supported mainly by building construction, which grew at an 8.6% pace (contribution 6.3 percentage points), but also a solid performance in civil engineering construction, which increased by 8.0% YoY.
The report covers the major players operating in the Eastern Europe Construction Market. The market is fragmented, the market is expected to grow during the forecast period due to the increase in the construction permits in the region and other few factors are driving the market.