Construction volumes fell in the third quarter of 2022
Text Mark Taylor Photo Andrei Chertkov
According to Statistics Estonia, in the third quarter of 2022, the total production value of Estonian construction enterprises in Estonia and abroad decreased by 3 per cent year on year at constant prices. Considering only the domestic market, construction volumes fell by 4 per cent.
The production value of Estonian construction enterprises totalled 1.2 billion euros. Building construction accounted for 760 million euros and civil engineering for 429 million euros. However, the volume of building construction decreased by 9 per cent and the volume of civil engineering works (roads, bridges, port facilities, pipelines, communication and electricity lines, sports fields, etc.) increased by 9 per cent.
The construction market continues to be affected by rapidly rising construction costs. “The domestic construction market was primarily influenced by the decreased volume of building construction. There were fewer building repair and reconstruction works. The volume of new building construction remained at last year’s level. The increased volume of civil engineering was mainly due to repair and reconstruction works, as the volume of new civil engineering decreased,” said Merike Sinisaar, a leading analyst at Statistics Estonia.
The construction volume of Estonian construction enterprises in foreign countries increased by a fifth compared with the third quarter of 2021. There was a rise in both building construction and civil engineering works carried out abroad. Construction in foreign countries accounted for 5 per cent of the total construction volume – this share was 4 per cent the year before.
According to the Register of Construction Works, 1,632 dwellings were completed in the third quarter of 2022, which is 6 per cent less than in the third quarter of 2021. Over a third of the completed dwellings were in the rural municipalities in the vicinity of Tallinn, followed by Tallinn and Tartu cities. The demand for new dwellings has declined. Building permits were granted for the construction of 1,521 dwellings, which is 40 per cent less than in the third quarter of 2021.