Decline in construction volumes continued in the first quarter

News
Posted on 27 May 2024, 8:00

According to Statistics Estonia, in the first quarter of 2024, the total production value of construction enterprises in Estonia and abroad decreased by 13% compared with the same quarter a year earlier. On the domestic construction market, volume fell by 14%.

The total production value of construction enterprises was €707 million, including €491 million worth of building construction and €216 million worth of civil engineering. Compared with the first quarter of 2023, the volume of building construction decreased by nearly a fifth, and the volume of civil engineering works (roads, bridges, port facilities, pipelines, communication and electricity lines, sports fields, etc.) increased by 1%.

Merike Sinisaar, leading analyst at Statistics Estonia, said that the domestic construction market was mainly affected by the decreased volume of building construction. “The construction of buildings has been in decline since the second quarter of 2022,” Sinisaar added.

The construction volume of Estonian construction enterprises operating abroad increased by 2% compared with the first quarter of the previous year. The rise in construction volumes there was mainly due to the construction of buildings. Construction in foreign countries accounted for 7% of the total construction volume, up from 6% in 2023.

According to the Register of Construction Works, 1,764 new dwellings were completed, which is 21% fewer than the year before. The majority of the new dwellings are in blocks of flats, and the most popular type of these buildings was a block of flats with 3–5 storeys. Most of the completed dwellings are in Tallinn, followed by the rural municipalities in the vicinity of Tallinn, and Tartu county.

“The demand for new dwellings keeps falling. Building permits were issued for the construction of 1,077 dwellings, which is almost a fifth (19%) less than a year earlier. A block of flats remains the most popular type of residential building,“ noted Sinisaar.

The number of completed non-residential buildings was 260, with a useful floor area of 171,100 m2. New office, industrial, and storage premises accounted for the biggest share of non-residential building construction. Compared with the first quarter of 2023, there was a decline in both the useful floor area and the volume of completed non-residential buildings.

Construction volume index and its trend, 1st quarter 2010 – 1st quarter 2024 (2021=100)
Change in construction volume index compared with corresponding period ​of previous year, %

 

Statistics Estonia collects and analyses data to produce the quarterly economic indicators of enterprises. The statistical activity is commissioned by the Ministry of Economic Affairs and Communications in order to understand how the Estonian economy is doing.

See also the construction section on our website.

More detailed data have been published in the statistical database.
 

When using Statistics Estonia’s data and graphs, please indicate the source.
 

For further information:

Heidi Kukk
Media Relations Manager
Marketing and Dissemination Department
Statistics Estonia
Tel +372 625 9181
press [at] stat.ee (press[at]stat[dot]ee)

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