The View 9

22 CONSTRUCTION MARKET

BARNA HARANGI Associate Director Head of Project Management & Building Consultancy

CONSTRUCTION MARKET PULLED THE BREAK Based on annualized figures, 2019 construction output grew by 22% as compared to the prior year. This is slightly higher than the 21% growth recorded in 2018. Despite exponential growth within the sector over the past two years, signs of deceleration are evident based on recent industry performance. The slowdown began during the summer months and accelerated over the second half of the year. This progression was most evident in December when construction output was just 3% higher as compared to the same month of the prior year. More importantly, the December figure for the construction of buildings showed a decrease of 11%, marking the first point in

this boom cycle when building construction activity actually declined on an annual basis. Forecasts are suggesting upwards correction following the disappointing figure in December, as the volume of the contracts increased by 39% for the construction of buildings. For civil engineering the trend is exactly the opposite; while the output continued to grow in H2 2019 and was 10% above its level a year ago as of December, forecasts suggest a quick contraction in future volume. Seemingly the joined growth of the building construction and civil engineering works will cease, and their future paths are to diverge as these projects compete for the same capacities on a market with serious supply shortages.