The increase of the constructions market has attracted big international retailers specialising in construction materials and has boosted the domestic businesses of construction material distributors, with the market expected to reach around 3-3.5 billion euros this year, according to a survey conducted by the Business Construct supplement, which is distributed free of charge, only with ZIARUL FINANCIAR.
"The current trend is due to surges which are occurring in the constructions industry. The bulk of construction materials is directed towards extensive real estate projects - the construction of shopping centres, large production facilities, residential complexes and also infrastructure investments," stated Dragos Paval, general manager of Bacau-based company Dedeman.
Most producers anticipated the increase in the consumption of construction materials on the domestic market, with the current level of domestic production used in the construction trade standing at around 60%. Therefore, in order to meet the market demand, producers are continuing their investment programmes.
The DIY market, the fastest growing market in the sector of construction material distribution, has seen an annual growth rate of 20-30% and is expected to continue on this upward trend for the next five years.
Distribution in the DIY sector accounts for around 30% of the total construction materials market and is estimated to reach over 900 million euros this year, according to market players. However, in comparison with other countries in South-Eastern Europe, home improvement materials only account for a small percentage of the construction materials market, which makes Romania a prime target for Western European players.
"Given the current position of Romania in terms of its urban development, I can only see the DIY market witnessing an increase; in fact a tremendo
