The number of building permits for residential units rose by 4.4% y/y to 24,821 in January-August, while the permits issued for non-residential projects over the same period of time cover a total surface area 21.9% larger compared to the area authorised for construction in the same period last year, according to data published by the statistics office INS. The report does not provide data immediately comparable for the area of the residential units.
The volume of construction works in the residential and non-residential segments of the construction market rose significantly, by 9.8% y/y and 6.2% y/y, respectively, in January-July this year, and the new permit numbers support expectations for steady advancement.
As regards the number of permits for the residential buildings, the highest growth rates were seen in the western and central parts of the country, with growth rates of 17.3% y/y and 12.0% y/y, respectively. The two regions account for 10%-11% of the total number of permits issued in the country, or a combined 21% share.
In Bucharest and its outskirts (Ilfov), the number of permits for residential buildings rose more slowly than the average, but still at a significant rate (+3.4% y/y), and accounts for 10.4% of the total.
The north-eastern part of the country is the only region where the number of permits decreased (-0.2% y/y), but this was on base effects, and the area still accounts for a massive 19% share in the total number of permits for residential buildings.
Regarding the non-residential constructions, outstanding growth rates were in the southern (Muntenia) and south-western (Oltenia) regions, where the surface area authorised for construction soared by 143% y/y and 157% y/y, respectively. The two regions account for 1/8% and 12% of the national total, or nearly a quarter of the market altogether.
In contrast, the region of Bucharest, including its surroundings, marked a 20% y/y decline in the surface area of the non-residential buildings approved for construction in January-August. The region still accounts for 15.9% of the total.
iulian@romania-insider.com
(Photo source: Somporn Suebhait/Dreamstime.com)
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