In the first quarter, construction volume fell by 11%
According to Statistics Estonia, in the first quarter of 2023, the total production value of Estonian construction enterprises in Estonia and abroad decreased by 11% at constant prices compared with the same period a year earlier.
The total production value of construction enterprises was 803 million euros, including 594 million euros’ worth of building construction and 209 million euros’ worth of civil engineering.Compared with the first quarter of 2022, the volume of building construction fell by 15%. The volume of civil engineering works (roads, bridges, port facilities, pipelines, communication and electricity lines, sports fields, etc.) remained at the same level.
Merike Sinisaar, leading analyst at Statistics Estonia, said that the construction market is affected by the continued rise in construction prices, rising interest rates, and declining consumer confidence. The domestic construction market was primarily influenced by the decreased volume of building construction. Fewer new buildings were built and there were fewer building repair and reconstruction works. The volume on civil engineering was up slightly (1.4%) from a year earlier, mainly due to an increase in repair and reconstruction works.
The construction volume of Estonian construction enterprises operating abroad decreased by 13% compared with the same quarter last year. There was a decline in both building construction and in civil engineering works. Construction in foreign countries accounted for 6% of the total construction volume, the same as a year earlier.
According to the Register of Construction Works, 2,225 new dwellings were completed in 2023, which is 78% more than the year before. Nearly half of the completed dwellings are in Tallinn (49%), followed by the rural municipalities in the vicinity of Tallinn (20%), and Tartu county (18%).
The demand for new dwellings has declined. Building permits were issued for the construction of 1,330 dwellings, down 29% from a year earlier. The most popular type of housing was still a block of flats.
The number of completed non-residential buildings was 265, with a useful floor area of 184,600 m2. New office, industrial, and storage 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.
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.
For further information:
Helen Maria Raadik
Media Relations Manager
Marketing and Dissemination Department
Tel +372 625 9181
press [at] stat.ee