Construction volumes increased about a fourth in the previous year

The production value of building construction was 1.2 billion euros and the production of civil engineering works totalled 849 million euros. Compared to 2011, the volume of building construction in real terms increased by 20% and the volume of civil engineering by 16%. The growth is caused mainly by repair and reconstruction work of buildings and was also supported by the civil engineering works. Despite the high growth rates during the last two years, the volume of the construction market in real terms is comparable with the years 2006 and 2008 and remained by more than a sixth smaller than in 2007, the most successful year on the construction market so far.

In 2012, the construction volume of Estonian construction enterprises in foreign countries increased 13%. The growth was mainly caused by building construction. Construction volumes in foreign countries accounted for 11% of the total volume of construction.

The completion of new dwellings which had stayed on decline trend for four years started to grow again in the previous year. According to the data of the Construction Works Register, the number of dwellings completed in 2012 was 1,990, i.e. 72 dwellings more than in 2011. Similarly to the previous years the largest share of completed dwellings was situated in blocks of flats and every second dwelling had two or three rooms. Since 2008, the share of dwellings situated in blocks of flats has continually decreased, which has increased the average floor area per dwelling. In 2012, the average floor area of a completed dwelling was 117 square metres. The majority of completed dwellings were situated in Tallinn, followed by the neighbouring rural municipalities of Tallinn, and Tartu county.

In spite of consumers’ price sensitivity, the demand for new dwellings with good location and quality has continued. Several new developments have appeared on the market, especially among higher buildings (six or more storeys), the construction of which had practically stopped in the intervening years. In 2012, building permits were granted for the construction of 3,035 dwellings, which is nearly a tenth more than a year earlier.

In 2012, the number of completed non-residential buildings was 840 with the total useful floor area of 474,000 square metres – this was primarily made up of new agricultural, commercial and storage premises. Compared to 2011, there was an increase in both the useful floor area and the cubic capacity of completed non-residential buildings.

In the 4th quarter of 2012, the production value of construction amounted to 563 million euros, which is 9% more than in the 4th quarter of 2011, whereas the construction of buildings increased by 16% and the construction of civil engineering works stayed on the same level.

Construction volume index, 2000–2012 (2005=100)