Romanian statistics

Private residential sector leads the top of construction sites in 2009

According to the data taken from the largest database with construction sites in Romania, www.raportuldeinvestitii.ro out of the 10.300 construciton sites recorded in the first 10 month of this year, 2.656 were projects under construction or in the finishing stage.

Out of these projects under construction, private residential projects counted for 26.3%, ranging first sector with the largest amount of sites under construction.

These numbers grounde IBC Focus’ predictions from April 2009, according to which this year there will be more dwellings finalized than the previous years, due to the large number of residential projects started in the boom year.

If previous years were characterized by large housing projects, this year a great part of these projects are in stand-by due to lack of financing. In exchange, medium and small projects continued their development, as you can see below:

Romania: economic sentiment indicator recorded the greatest drop in the EU

The investors’ and consumers’ economic sentiment in Romania has been dropping continuously for 12 months, by September 2009. This indicator was downgraded especially by the construction sector. At the same time, the sentiment index in the EU has been increasing constantly for 6 months.

The index components are industry confidence (40% weight), services (30%), construction and retail (5% each) and the overall perception of consumers on the economic situation (20%).

22 luxury hotels under construction in Romania

The luxury tourism segment was undeveloped until 2008 when investors were mostly oriented towards 3 stars hotels. In fact, by 2008 there were only sixteen 5-stars hotels in Romania and 99 4-stars hotel units. Since 2008, investors saw the potential this market offers and announced many 4 and 5 stars hotel projects, so that the highest growth rates were recorded by these 2 segments in 2008 compared to the previous year:

 

In 2009 economic crisis has affected hospitality sector in Romania, so that in January hotels take up in Bucharest was dropped to 33, 7%! Moreover, according to a study conducted by IBC Focus, at least 25% of the announced luxury projects are stopped based on lack of financing.

 

Still, at the moment there are 22 luxury hotels under construction, all included in the Luxury Hotels Report, conducted by IBC Focus.  According to the Report, there are other eighteen 4 and 5 stars units in the designing stage that will soon start construction works.

5 reasons to be optimistic in the construction market

1. The total number of construction projects in the IBC Focus database increased in Q1 2009 as compared to the last quarter of 2008 by 24%. Have a look at the growth rates recorded by each construction segment:

             

2.   According to the IBC Focus database, the  investments realized in the projects under construction in the first quarter of the “crisis” year exceeded 2.6 billion Euros, the industrial segment being the most valuable at the moment:

3.      3.  In the same period, IBC Focus offered contact information to 646 active construction sites in Romania.

4.       4. Some of the biggest commercial banks in the country have already announced that in the next 3 months they will start relaxing loan conditions in order to enhance lending to the population. Reducing the interest rates that are practiced at present depends largely on the National Central Bank’s decision to reduce the key interest rate (of 10%) in the session that will take place on the 6^th of May.  Financial analysts forecast that this key interest will be reduced at least 0.25% at that date.

5.      5.  In April 2009 the economic sentiment in Romania, as well as in the EU rebounded after a down confidence degree in March, with 1.2 points. Out of the 5 indices that form this indicator construction rose by 4 points, consumer by 2 points and retail-trade by 10 points, while services and industry decreased by 3 points each. 

Source: Eurostat, banks, IBC Focus

Do-it-yourself (DIY) market in Romania defies crisis

At least 29 DIY and furniture centers will open this year in Romania according to the Do-it-yourself and Furniture Centers Report conducted by IBC Focus.

Source: Iresearch

These projects will add to the actual stock approximately 220.000 sqm this year. According to the same Report, the total DIY and furniture stock in Romania could exceed 1 million sqm in 2010 if all projects verified by the IBC Focus consultants will be finalized next year.

Source: Iresearch

What might be the explanation for the projects boom in this market in a period of crisis?

First of all, for most of the projects under construction presented in the Report construction works started in 2008 and are financed with loans obtained last year. Second of all, these centers sell products that will help Romanians save money in this period. That's why most of the retailers' plans are to be present in most of the big and average cities in Romania.

For more information regarding this market and 50 DIY and Furniture projects please visit www.iresearch.ro

Are there harder times coming?

Despite the financial crisis that affects Romania also, Romanian employers intend to hire people more than firing.
And what's even better is that the expectation for firing people in the next trimester are lower than currently. So are there harder times coming for Romania?

Source: Capital

What weighs more in the Romanian consumer basket?

Source: Gandul

How Romanians commit suicide

Almost a quarter of the violent death that took place in our country were suicides. 2594 Romanians ended their life in the past year, according to Legal Medicine National Institute data. Therefore suicides count for 22.7% of the violent death total, while only 4.89% are homicides.

 

Source: Legal Medicine National Institute

 

Wage evolution in the public sector

In the past two years, gross wages in public administration and defense grew by 67%, provided that inflation was about 15%.

Source: INS

Bestseller Concerts in 2008

2008 was a hot year for good music lovers. The need for this kind of entertainment  is  so big that tickets are sold within just a few days.

Source: Capital