During 23 December
2009 and 22 January 2010, IBC Focus realized a study on the trends that
characterize online promotion in the Romanian construction market. The study is
based on the responses of 258 marketing/sales managers or business
administrators from companies in the construction sector.
Take a look
at some of the highlights:
Which do you consider the most effective online promotion tool for you
business?
Are you registered in one of the following virtual social networks?
More than half of
the sales consultants in the construction market (53%) forecast their wage will
remain at the same levels recorded in 2009. At the same time, 17% expect their
revenues to drop in 2010.
If revenues are expected to languish sales targets will increase in the first half of 2010, as 46% of the respondents assert:
These trends were revealed by a study realized during 4 –
15 February 2010 by IBC Focus, on a sample of 97 sales and marketing
specialists and company administrators. For more market studies and reports visit www.iresearch.ro
In 2009, the number
of employees in the construction market was down to 350.000 and it will continue to
drop this year too.
ARACO (Romanian Builders and Contractors Association) representatives forecast that the number of unemployed persons in this sector will be more than 50.000.
Below you can see how workers number in the construction sector diminished in the last 2 years:
Read more in Construct Intelligence.
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.
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%).
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.
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 6th 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
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
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
Source: Gandul