Intellinews - SEE Construction and Real Estate Report - March 2013

Executive summary

REGIONAL OVERVIEW
Construction activity in most SEE countries declines in H1 2012.
Bulgaria’s capital leads with new office supply in H1 2012.

CONSTRUCTION INDUSTRY
ALBANIA
Construction sector’s contribution to GDP.
Albania’s construction cost index rises in Q2 2012
Albania signs loan agreement with EIB.

BOSNIA AND HERZEGOVINA
Construction output in Bosnia’s two entities falls in Jan-July 2012.
Number of completed housing units in Bosnia up in H1.
Bosnia construction firms expand works abroad.

BULGARIA
Bulgaria’s construction output down in June 2012
Building permits down in Q2 2012
Bulgaria to set up JV with Turkey and Qatar for Ruse-Svilengrad road

CROATIA

Construction sector’s contribution to GDP.
Croatia’s construction permits down in Jan-June 2012.
Croatia's construction output down in Jan-May 2012.
Construction firm IGH signs contact with Hrvatske Autoceste..
Croatia terminates contract for Peljesac bridge construction.
EIB lends to Croatian motorway operator HAC.

MACEDONIA
Construction sector biggest contributor to Macedonia’s 2011 economic growth
Business sentiment in Macedonia's construction sector improves in Q2 2012.
Contracting foreign market for Macedonian construction companies in H1 2012.
Macedonia starts construction of Corridor X section.
EBRD considers loan for Corridor VIII railway section in Macedonia.

MOLDOVA
Moldova’s construction works down in H1 2012.
Investments in construction projects up in H1 2012.
Producer price growth in construction sector speeds up in Q2 2012.
CoE Development Bank to lend Moldova for social housing construction.
Austria’s Strabag wins road upgrade contract in Moldova.

MONTENEGRO
Montenegro’s construction sector plunges in Q2 2012.
Montenegro building permits up in Q2

ROMANIA
Romania’s construction works volume grows in Q2.
Forecasting commission CNP projects growth of construction works in2012
Number of building permits for residential buildings down in Jan-July 2012.
Investments in new construction works up in Q2.
Romania receives 23 bids for two motorway construction projects.
Romania signs deal for Bucharest bypass upgrade.
EC approves funding for motorway project in Romania.
Swedish construction firm Skanska to enter Romania.
Spanish firm Copisa gets EUR 35mn road rehabilitation contract in Romania.

SERBIA
Serbia’s construction activity up in Q2 2012.
Building permits up in Jan-July 2012.
Serbia gets 25 bids for construction of 30-km section on Corridor X branch.
Serbia's Inter-Kop to participate in metro stations construction in Kazakhstan.
Serbia hires Azerbaijan's AzVirt to build motorway section.

SLOVENIA
Slovenia’s construction sector contracts for third year in row
Value of construction works plunges in July 2012
Slovenia’s construction cost index down in Q2 2012

REAL ESTATE
ALBANIA
Albania’s office market to stagnate in 2012
Albania’s shopping centre’s stock increases in H2 2011.

BOSNIA AND HERZEGOVINA
Investments in Bosnia’s real estate sector more than double in 2011
Bosnia’s Federation apartment prices rise in H1 2012

BULGARIA
Sofia office market adds 79,000 sq m new space in H1 2012.
Retail property market seen expanding in 2012.
Property investment market remains idle in H1 2012.
Home prices in Bulgaria down in Q2 2012

CROATIA
Prices of new homes in Croatia up in H2 2011.
Raiffeisen sees Croatia’s housing prices falling through 2022.
Zagreb’s office market to add new supply in 2012 and boost vacancy rate to 15%.
International retailers continue to be drivers of retail demand in Croatia.
Industrial and logistics market one of least developed Croatian real estate markets.

MACEDONIA
Apartment prices in Macedonia down in 2011.
Supply on Skopje office market rises in H1 2012.

MOLDOVA
Real estate prices in Moldova to fall in 2012.
Scarce demand for offices in Moldova.

MONTENEGRO
Home prices plunge in Q2 2012
Sale of new apartments jumps in Q2.
Real estate projects attract 47.8% of FDI in Jan-July 2012
Lustica Development invests EUR 0.81mn in Q1.

ROMANIA
Romania’s real estate investments seen down to EUR 300mn in 2012 - study.
Residential property prices keep on falling in Q1 2012.
Real estate investments in Romania slip to seven-year low in Q1
Weak new office supply in H1, expectations for next 18 months more promising.
Bucharest industrial stock stays unchanged for fifth straight quarter

SERBIA
Prices of new apartments edge down in H1 2012.
Belgrade retail property market stagnates in H1 2012

SLOVENIA
Housing prices up in Q2 2012.



List of Tables

Table 1 EU Construction Output
Table 2 SEE Office Stock
Table 3 Albania Construction Sector's GVA
Table 4 Albania Building Permits 2000 - 2010
Table 5 - Albania's Construction Cost Index
Table 6 Croatia's Construction Sector GVA in constant prices (%, y/y)
Table 7 Macedonia construction sector's GVA
Table 8 Moldova construction sector's GVA
Table 9 Romania GDP Breakdown
Table 10 Romania’s Building Permits
Table 11 Serbia Construction Sector's GVA
Table 12 Slovenia Construction Sector's GVA
Table 13 Slovenia Building Permits
Table 14 Average home prices in major Bulgarian cities
Table 15 Residential Property Indices in 2010-2012 (2009=100)
Table 16 Asking Prices for Apartments
Table 17 Shopping centre stock in CEE in H1 2012
Table 18 Serbia Housing Prices
Table 19 Shopping Centres Under Construction
Table 20 Sale of apartments in Slovenia



List of Figures

Figure 1 Albania Construction Cost Index
Figure 2 Bosnia's construction output (y/y change in %)
Figure 3 Bulgaria's Construction Output (% y/y in seasonally and working-days-adjusted terms
Figure 4 Bulgaria's Building Permits
Figure 5 Croatia's Building Permits
Figure 6 Croatia's Building Permits by Type
Figure 7 Croatia's Construction Output
Figure 8 Macedonia's number of newly-issued building permits
Figure 9 Macedonia's Construction Sector Sentiment
Figure 10 Moldova producer price indices in construction
Figure 11 Montenegro's Construction Output
Figure 12 Montenegro's Building Permits
Figure 13 Romania Construction Works index (2005=100)
Figure 14 Romania’s Construction Works, y/y change
Figure 15 Serbia Construction Works
Figure 16 Value of Construction Works in RSDbn
Figure 17 Number of building permits by type of construction
Figure 18 Number of building permits, y/y change
Figure 19 Value of Construction Works in Slovenia (%, y/y)
Figure 20 Slovenia Constructio Cost Index
Figure 21 Construction Confidence Indicator
Figure 22 Average Price of Apartments in New Residential Buildings (in EUR)
Figure 23 FDI Inflow
Figure 24 Annual Change in Slovenia Home Prices