The construction industry in Romania grew in the first quarter of the year 20 percent, three times faster than the entire economy. The value of construction works for 2005 was estimated at six billion euros and is expected to grow 25 per cent in 2006. The malls, houses, villas and office buildings are being constructed at a rapid pace in Bucharest, the market being fuelled by private projects paying cash. Hidroconstructia, the market leader, reported in 2005 a 160 million euro turnover, up 30 million euros as against the previous year.
The real estate and private projects were responsible for this growth, says Carpatcement director Mihai Rohan, quoted by Ziarul Financiar. He believes that the public contracts market will stagnate, the growth falling into the private sector responsibility. It is expected that the Brasov-Bors motorway, the largest infrastructure project in Europe, whose construction will resume in 2006, as well as other public contracts, will bring hundreds of millions of euros to the market.
Some 343,000 people are employed in the construction sector, a labour force accounting for 7.5 percent of Romania’s GDP. Paradoxically, the workers earn salaries below the national average, currently standing at Euro 230 per month.