Foundation still sinking for builders

  • 2011-03-02
  • From wire reports

TALLINN - Total production by Estonian construction companies for 2010 in Estonia and in foreign countries reached 1.3 billion euros, which is 13 percent less than a year earlier, show data at Statistics Estonia, reports news agency LETA. The construction numbers, which had started to decline in 2008, kept decreasing in 2010.
The production value of building construction was 740 million euros and the production of civil engineering totaled 542 million euros. Compared to 2009, the volume of building construction decreased 17 percent and the volume of civil engineering 6 percent. The decline in construction was mainly caused by the decreased volumes in dwelling construction on the domestic market.

In contrast to the domestic construction market, which is in a decline stage, in 2010 the construction volume in foreign countries increased 12 percent compared to the previous year. The growth was due to building construction. Construction in foreign countries has increased during the previous years, accounting for 11 percent of the total volume of construction.
According to the data of the Construction Works Register, the number of dwelling completions in 2010 was 2,324 – 702 dwellings less than in 2009. Also in 2010, the largest share of completed dwellings was situated in blocks of flats, with every second dwelling having 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 2010, the average floor area of a completed dwelling was 102 square meters, which is the biggest during the last nine years. The majority of completed dwellings were situated in Tallinn, followed by the neighboring rural municipalities of Tallinn and Tartu county.

The increasing demand for the new dwellings brings positive expectations on the construction market. In 2010, building permits were granted for the construction of 2,600 dwellings, which is about a fourth more than a year earlier.
In 2010, the number of completed non-residential buildings was 815, with a useful floor area of 425,000 square meters. The useful area of commercial, office and industrial buildings increased the most. Compared to 2009, the useful floor area and the cubic capacity of completed non-residential buildings decreased.

The construction market, which had showed a small increase in the 3rd quarter of 2010, turned to decline again in the 4th quarter. In the 4th quarter of 2010, the production value of construction amounted to 344 million euros, 5 percent less compared to the 4th quarter of 2009, of which the construction of buildings decreased 4 percent and the construction of civil engineering by 5 percent.