Construction volume fell by 6% last year

News
Posted on 23 February 2024, 8:00

According to the preliminary data of Statistics Estonia, in 2023, the total production value of Estonian construction enterprises in Estonia and abroad decreased by 6% at constant prices compared with 2022. Considering only the domestic market, the fall in construction volume was 7%.

The total production value of construction enterprises was 4.1 billion euros, including 2.6 billion euros’ worth of building construction and 1.5 billion euros’ worth of civil engineering. Compared with 2022, the volume of building construction fell by 11%, and the volume of civil engineering works (roads, bridges, port facilities, pipelines, communication and electricity lines, sports fields, etc.) rose by 4%.

Merike Sinisaar, leading analyst at Statistics Estonia, said that the construction market in 2023 was affected by the continued rise in construction prices, 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,” explained Sinisaar.

The construction volume of Estonian construction enterprises operating abroad increased by 18% in 2023 compared with the preceding year. There was a rise in building construction as well as in civil engineering works completed abroad. Construction in foreign countries accounted for 7% of the total construction volume, up from 5% in 2022.

Change in construction volume index compared with the previous year

According to the Register of Construction Works, 8,424 new dwellings were completed last year, which is 29% more than the year before. The majority (68%) of the new dwellings were in blocks of flats, and the most popular type of these buildings was again a block of flats with 3–5 storeys. Dwellings with two rooms represented the biggest share of dwelling completions, followed by dwellings with four rooms and 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 metres. Most of the completed dwellings are in Tallinn, followed by the rural municipalities in the vicinity of Tallinn, and Tartu county.

New dwellings by number of rooms, 2023

The demand for new dwellings continued to decline for the third year running. Building permits were issued for the construction of 5,612 dwellings, which is almost a fifth less than the year before. A block of flats remains the most popular type of residential building.

In 2023, the number of completed non-residential buildings was 1,036 with a useful floor area of 818,600 square metres. New industrial, warehouse and office premises accounted for the biggest share of non-residential building construction. Compared with 2022, there was an increase in both the useful floor area and the volume of completed non-residential buildings.

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


Statistics Estonia collects and analyses data to produce the quarterly economic indicators of enterprises. The statistical activity is commissioned by the Ministry of Economic Affairs and Communications in order to understand how the Estonian economy is doing.

See also the construction section on our website.

More detailed data have been published in the statistical database.

When using Statistics Estonia’s data and graphs, please indicate the source.
 

For further information:

Helen Maria Raadik
Media Relations Manager
Marketing and Dissemination Department
Statistics Estonia
Tel +372 625 9181

press [at] stat.ee (press[at]stat[dot]ee)

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