The dynamic of the residential building construction, as well as of the commercial and office buildings is continuing in 2016.
In February 2016 compared to February 2015, in Romania 11.6% more construction permits have been issued for residential buildings, show data from the National Institute for Statistics (INS). Over the previous month this was a 75.6% advance.
The local market of mineral wool insulation systems, which is estimated at 40-50 million euro in 2014, is expected to have increased by more than 5% in 2015, due to the improvement of the number of building permits, positive signals in the economy and raising awareness of population on the effectiveness of thermal insulated buildings. In Romania operate approx. 50 manufacturers of EPS, which according to sector publications, have a total capacity of manufacturing over 8 million cubic meters/year, while annual consumption is less than 3 million cubic meters/year.
The Romanian market for adhesives and dry mortars, estimated at about 200 million euros per year, increased by 3%-5% last year compared to 2014, according to industry managers' opinions, especially due to renovation and rehabilitation projects, and as a result of the revival of the entire construction sector.
For example, the Romanian building materials producer AdePlast reported a turnover growth of over 10% in Q1 of 2016 compared to the same period of 2015.
Regarding the local market of gypsum plasterboards, it is estimated at about 110 million euro per year, and it is expected to continue growing in 2016 - 2018, due to the large number of projects under construction that would be completed in the next two years. Additionally, according to sector publications, sales of gypsum plasterboards and suspended ceilings will be sustained by the delivery of about 700,000 sqm of office buildings this year, only in Bucharest.
The Romanian market of architectural paints and varnishes grew by 5%-10% in 2015, compared to 2014, to about 160-170 million euro, data confirmed by most managers in the area. For the period 2016-2020, the main suppliers of paints and varnishes expect an annual development of about 10%. The increase in 2015 was due to a slight rise of demand in the DIY segment, an also to the buildings rehabilitation works and to new residential projects.
Regarding the Romanian flooring systems market (industrial, polyurethane etc.) - valued at about 40-50 million per year, according to sector publications - it is considered to have progressed slightly in 2015, indicating a new trend in the field of customer preference for 3D decorative floors. For 2016, managers of the major companies providing adhesives, dry mortars and flooring systems indicate a possible slight increase in demand, given the enhancement of the national program for building refurbishment, announced and confirmed by the relatively high number of tenders published during the last months of 2015.
Sources: Agenda Constructiilor, Business Review, ZF
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