Housing construction fell in the first 8 months by almost 25%, according to data from the National Institute of Statistics, sent on Friday.

The efforts of builders to restore the pace of construction are taking place against the background of an increase in the cost of materials, as well as an increase in the cost of bank financing (higher interest rates reduce the desire to take loans from banks)

Housing construction fell in the first 8 months by almost 25%, according to data from the National Institute of Statistics, sent on Friday.

The efforts of builders to restore the pace of construction are taking place against the background of an increase in the cost of materials, as well as an increase in the cost of bank financing (higher interest rates reduce the desire to take loans from banks)

In 8 months of this year, 23,311 permits for the construction of residential buildings were issued, which is 23.9% less compared to the same period in 2022.

The decrease was recorded in all development regions: Bucharest-Ilfov (-1539 authorizations), North-West (-1181), South Muntenia (-1132), West (-932), North-East (-792), South-East (-722 ), South-West Oltenia (-604) and Center (-407).

August 2023 compared to July 2023

In August 2023, 3,115 permits for the construction of residential buildings were issued (+1.9% to July 2023), with a total usable area of ​​730,973 sq.m (-16.1%).

Of the total number of permits for the construction of residential buildings, 68.1% are in rural areas.

In August 2023, there was an increase in the number of issued permits for the construction of residential buildings compared to the previous month (+59 permits).

In the territorial profile, this growth is reflected in the following development regions: South-East (+62 authorizations), South-Muntenia (+45), Bucharest-Ilfov (+36) and North-East (+27). The decrease was recorded in the following development regions: North-West (-42 authorizations), Center (-36), South-West Oltenia (-28) and West (-5).

In August 2023, 541 permits were issued for the construction of non-residential buildings (-1.3% by July 2023), with a total usable area of ​​226,982 square meters (-48.8%).

Compared to the previous month, in August 2023 there was a decrease in the useful area of ​​issued permits for the construction of non-residential buildings (-216,575 sq.m.).

In the territorial profile, this decrease is reflected in the following development regions: North-West (-154299 sq. m), West (-32542), Bucharest-Ilfov (-29803), North-East (-7449), South Muntenia (- 6078) and Southwest Oltenia (-1727). Growth was recorded in the South-East (+12,214 sq. m.) and Central (+3,109) development regions.

August 2023 compared to August 2022

In August 2023, there was a decrease in both the number of issued permits for the construction of residential buildings (-23.0%), and the total usable area (-31.7%), compared to August 2022.

Territorially, this decrease in the number of issued permits for the construction of residential buildings (-928 permits) is reflected in all regions of development: North-West (-198 permits), North-East (-150), South-Mountain (-113), South- West Oltenia (-107), South-East (-99), West and Central (-91, each) and Bucharest-Ilfov (-79).

Compared to August 2022, August 2023 saw a decrease in the number of issued permits for the construction of non-residential buildings (-14.8%) and an increase in the total usable area (+4.9%).

From the point of view of the territorial profile, this increase in usable area for building permits issued for non-residential buildings (+10,625 sq.m.) is reflected in the following development regions: Center (+22,875 sq.m.), Northeast (+19,757). ), West (+14496), South Muntenia (+1690) and Bucharest-Ilfov (+565).

The decrease was registered in the following development regions: North-West (-37676 sq. m), South-East (-9484) and South-West Oltenia (-1598). For the period 1.I – 31.VIII.2023, 23,311 permits for the construction of residential buildings were granted, which is 23.9% less compared to the period 1.I – 31.VIII.2022.

The decrease was recorded in all development regions: Bucharest-Ilfov (-1539 authorizations), North-West (-1181), South Muntenia (-1132), West (-932), North-East (-792), South-East (-722 ), South-West Oltenia (-604) and Center (-407).