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Construction volumes fell, but demand for new dwellings remains high

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Posted on 26. February 2021 8:00

According to the preliminary data of Statistics Estonia, in 2020, the total production value of Estonian construction enterprises in Estonia and abroad was 3 billion euros. The construction volume decreased by 6% year on year. Considering only the Estonian construction market, the decrease in construction volume was 3%.

The construction production in Estonia and abroad included 2.1 billion euros’ worth of building construction and 936 million euros’ worth of civil engineering (roads, bridges, port facilities, pipelines, communication and electricity lines, sports fields, etc.). Compared to 2019, the volume of building construction fell by 7% and the volume of civil engineering works fell by 5%.

Merike Sinisaar, leading analyst at Statistics Estonia, said that the decrease in construction volumes last year followed four years of growth. “The fall in building construction volumes had the biggest impact on both the domestic and the foreign construction market. The construction volume of Estonian construction enterprises in foreign countries decreased by nearly a third in 2020. Construction in foreign countries accounted for 6% of the total construction volume, down from 8% in 2019,” added Sinisaar.

Change in construction volumes compared to previous year

The construction of dwellings has been on the rise since 2012. According to the Register of Construction Works, 7,579 dwellings were completed in 2020, which is 565 dwellings more than in 2019. The majority (61%) of new dwellings are in blocks of flats. The most popular type of building was a 3–5-storeyed block of flats. The biggest share of new dwellings had three or four rooms. The average floor area of new dwellings was 93 square metres. Similarly to previous years, the majority of completed dwellings were in Tallinn, in the rural municipalities in the vicinity of Tallinn and in Tartu county.

Demand for new dwellings is still strong. In 2020, building permits were granted for the construction of 8,833 dwellings, with a block of flats being the most popular type of building.

The number of completed non-residential buildings was 1,352, with a useful floor area of 0.9 million square metres. New trade, storage and industrial premises accounted for most of the non-residential building construction. Compared to 2019, there was an increase in both the useful floor area and the volume of completed non-residential buildings.

Dwellings completed in 2020 by type of residential building

In the fourth quarter of 2020, the production value of Estonian construction enterprises totalled 820 million euros, which is 6% less than in the same quarter of 2019. There was a 3% decrease in the volume of building construction and a 13% decrease in the volume of civil engineering works.

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:

Kadri Kütt
Media Relations Manager
Marketing and Dissemination Department
Statistics Estonia

Tel +372 625 9181

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