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Estonia Construction volumes down 6 percent in 2023
[Feb 28, 2024]

According to preliminary data provided by Statistics Estonia, in 2023, the total production value of Estonian construction enterprises, domestically and abroad, decreased by 6 percent at constant prices compared to 2022. On the domestic market alone, there was a 7 percent fall in construction volumes.

The total production value of construction enterprises was €4.1 billion. Building construction accounted for €2.6 billion of this, with civil engineering amounting to a further €1.5 billion. Compared with 2022, building construction volumes were down by 11 percent, whereas the volume of civil engineering works (roads, bridges, port facilities, pipelines, communication and electricity lines, sports fields, etc.) rose 4 percent.

Merike Sinisaar, leading analyst at Statistics Estonia, said that the construction market in 2023 was affected by the continued rise in construction prices and higher interest rates, as well as declining consumer confidence.

"The domestic construction market was mainly influenced by the decreased volume of building construction. There was a decline both in new building construction and in the volume of repair and reconstruction works. The increase in the volume of civil engineering was mainly due to repair and reconstruction works," Sinisaar said.

The construction volume of Estonian construction enterprises operating abroad grew by 18 percent in 2023 compared to 2022. There were increases in both building construction and civil engineering works completed abroad. Construction in foreign countries accounted for 7 percent of Estonia's total construction volume, up from 5 percent in 2022.

According to the Register of Construction Works, 8,424 new dwellings were completed in 2023, which is 29 percent more than the year before. The majority (68 percent) of new dwellings were in apartment blocks, the most popular being blocks with 3-5 stories.

Among dwellings completed, those with two rooms were the most numerous. This was followed by dwellings with four rooms and then dwellings with three rooms. The number of dwellings with three rooms increased the most last year. The average floor area of new dwellings was 86 square meters.

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 continued to fall for the third consecutive year. Building permits were issued for the construction of 5,612 dwellings, which is almost a fifth less than the year before. Apartment blocks remains the most popular type of residential building.

In 2023, the number of non-residential buildings completed was 1,036 with a combined usable floor area of 818,600 square meters. New industrial, warehouse and office premises accounted for the biggest share of non-residential buildings constructed. Compared to 2022, there was an increase in both the usable floor space and the overall volume of completed non-residential buildings.

In the fourth quarter (Q4) of 2023, the total production value of Estonian construction enterprises was €1.2 billion, which is 4 percent more than in Q4 of 2022. The volume of building construction fell by 4 percent and the volume of civil engineering works rose by around a fifth.

Source: news.err.ee