Statistics: Construction volumes down 12 percent in Q2 2023

Construction work in progress.
Construction work in progress. Source: Siim Lõvi /ERR

According to data provided by Statistics Estonia, in the second quarter (Q2) of 2023, the total production value of Estonian construction enterprises, both in Estonia and abroad, decreased by 12 percent at constant prices compared with the same period a year earlier.

The total production value of construction enterprises in Q2 was €1.019 billion. Building construction accounted for €646 million, while civil engineering amounted to €373 million.

Compared to the first quarter of 2022, the volume of building construction fell by 13 percent on year. Meanwhile, the volume of civil engineering works including roads, bridges, port facilities, pipelines, communication and electricity lines and sports fields was down 9 percent.

Merike Sinisaar, leading analyst at Statistics Estonia, said that the construction market is still being impacted by the continuing rise in construction prices as well as high interest rates and declining consumer confidence.

"The construction of buildings has been in decline since the second quarter of 2022, but now there is also a downward trend when it comes to civil engineering volumes," said Sinisaar.

The domestic Estonian construction market was primarily influenced by the decreased volume of building construction. This was mainly due to the decrease in building repair and reconstruction works. As for civil engineering, there were falls in the volume of new civil engineering works as well as in repair and reconstruction works.

Construction volume index. Source: Statistics Estonia

The construction volume of Estonian construction enterprises operating abroad increased by almost half compared when compared to the figures from Q2 2022. There were rises in the volumes of both building construction and civil engineering works. Construction works abroad accounted for 8 percent of the total construction volume in the second quarter, which is up from 5 percent in the same period last year.  

According to the Register of Construction Works, 2,113 new dwellings were completed, which is 12 percent more than the year before. Nearly half of the completed dwellings are in Tallinn (43 percent), followed by Tartu County (24 percent) and rural municipalities in the vicinity of Tallinn (19 percent).

The demand for new dwellings is continuing to fall. Building permits were issued for the construction of 855 dwellings in Q2, meaning there has been a 41 percent decrease on year. The most popular type of residential building was a single-family detached home.

Change in construction volume index. Source: Statistics Estonia

The number of newly completed non-residential buildings was 214, with a combined usable floor area of 136,700 m2. New industrial, office and commercial premises accounted for the biggest share of non-residential building construction When compared with the figures for the second quarter of 2022, there was an increase in both the amount of usable floor area and volume of non-residential buildings completed.

More detailed information can be found here and here.


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Editor: Michael Cole

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