Booming infrastructure works in Romania of 2009

Over the last 3 years, the residential market in Romania exploded with new residential projects due to the high internal demand sustained by a greater permissiveness of the credit system. Many small construction companies found a good place in the market and works were rolling. Even if new projects offer more space than Romanians were used to, the livable area is still far behind Western European one.

According to the analysis on Cluj Napoca real estate market, (the second developed city in Romania in what construction sector in concerned, which attracted foreign investment worth over 1 billion Euros by 2008), conducted by Fix UP Company, the average area per dwelling in the city is only 39 m²:

Mesmerized by the residential mania, construction companies as well as customers haven’t paid attention to the necessary infrastructure, which hasn’t developed at the same pace as the new real-estate areas.

This is why, on the Romanian Government priority list of this year is the development of infrastructure in the entire country. Government declarations are sustained by the huge increase of infrastructure projects recorded in the IBC Focus Investment Report in the first quarter of this year as compared to the last three months of 2008, of 31%. Moreover of the total number of construction projects recorded in the first quarter by the IBC Focus specialists, infrastructure projects weigh the most:

The IBC Focus consultants forecast that, for the entire year of 2009, infrastructure works will increase even more than in the first quarter due to the European funds granted for this segment. Authorities estimate that Romania will attract 25% of the total European budget granted for infrastructure projects this year. Alongside highway construction works which will account for 2 billion Euros this year, the Government will budget the rehabilitation and modernization of all 16 international airports in the country as well as the construction of 5 new airports, according to the Romanian Airports Report.

Still, even if the infrastructure sector will record growth rates of 30% for the next 4-5 years, it still lags much behind Western Europe, therefore Romania being one of the European countries with the highest potential for investors with activities in this field!

 

Source: Fix UP, IBC Focus