Economic growth in South-Eastern Europe will stimulate construction in these countries while in Russia such a revival is not expected, the construction magazine KHL says.
According to the Eastern European Construction Forecasting Association EECFA, in the period from 2018 to 2020, the building construction will expand in countries such as Bulgaria, Croatia, Romania, Serbia, and Slovenia. Moreover, some housing markets in the region show record high results, which leads to the risk of “overheating” the economy.
Last year, a figure of -0.6% was recorded in the Russian construction market, mainly as a result of the decline in civil construction. This year, the total construction volume should grow by 0.7%, the analysts report, but in 2019-2020, the market will again show a steady decline — by 1.9% in 2019 and 1.4% in 2020.
At the same time, EECFA experts emphasize that the housing market — the second largest segment of the Russian construction market after civil construction — can become a “locomotive of construction”. However, the report authors note, this will not happen in the coming years because of the recently adopted law, which increases the costs of construction companies, as well as due to a decrease in the solvency of Russians and the exhaustion of the positive effect of low rates on mortgage loans.