ANALYSIS: The construction sector fell below 9 billion EUR during last year

The local construction market, estimated at about 9.5 billion EUR in 2013 decreased as gross series by 6.7% during last year to about 8.85 billion EUR. By structural elements, the capital repair works decreased by 17.9%, the current maintenance and repair works decreased by 9% and the new construction works fell by 3.2%. By construction objects, the volume of civil engineering works regressed by 21.8%, while the residential and nonresidential buildings recorded increases of 32.6% and 16.6%. According to the latest estimates made by the National Commission for Prognosis (CNP), an expansion of 4.7% in the construction sector during 2015 is expected, which means that the field will reach about 9.26 billion EUR at the end of the year. However, according to the industry representatives, the sector is far from a sustainable recovery that can ensure a minimum profitability of specialized companies. However, the latest actions of government in order to combat corruption, fraud and tax evasion make difficult the work in the field, according to operators. "At the moment all works are subjected to excessive controls and the regulations are extremely laborious. On the one hand, these actions probably bring more accuracy and fairness in the sector, but unfortunately slow down the performance of the contracts", said Cristian Erbasu, the president of the Society of Construction Companies (PSC) and the general manager of Erbasu SA construction company. In what concerns the increase of the residential construction by 32.6%, the PSC representative said that there may be a recovery for this segment. "It was a period of six years during which housing units have not been built. It is obvious that there is a new generation with other necessities, while the current demand is based on lending through the First House program. The demand in this area reoriented some builders and investors towards it, in the absence of other alternatives. Developers and entrepreneurs seek for any niche and exploit it, and this one appeared and I think it will grow in the years to come. Also, in this period, the transactions of the real estate properties begin to grow, not for land, but especially for housing", said the president of PSC.