The total production value of Estonian construction enterprises, both domestically and abroad, dropped by 6% in 2024, compared to the previous year, data from Statistics Estonia has revealed.
On a domestic-only basis, construction volume fell by 7%.
The total production value of the Estonian construction sector totalled €3.9 billion in 2024, including €2.4 billion worth of building construction and €1.5 billion of civil engineering, the data showed.
Building construction fell by 9%, while the volume of civil engineering works, including roads, bridges, port facilities, pipelines, communication and electricity lines, and sports facilities, fell by 2%.
Decrease in volumes
“The downturn in the domestic construction market is mainly due to the decreased volume of building construction,” commented Merike Sinisaar, lead analyst at Statistics Estonia.
“The construction of buildings has been in decline since the second quarter of 2022, while the volume of civil engineering began falling in the second half of 2024.”
Despite the downturn in domestic construction, Estonian construction enterprises operating abroad saw a 5% increase in production volumes last year, which was mainly influenced by building construction.
“Construction in foreign countries accounted for 7% of the total construction volume last year,” Sinisaar added.
Some 5,815 new residential dwellings were completed in 2024, approximately a third fewer than the previous year, with the majority of these located in multi-storey apartment buildings.
The average floor area of new dwellings was 93 square meters, with four-room apartments the most frequently built residential dwellings. The majority of new dwellings were constructed in Tallinn, as well as in surrounding rural municipalities and Tartu County.
New housing demand
The data also showed that demand for new housing in Estonia continued to decline for the fourth consecutive year. In 2024, building permits were issued for 4,973 dwellings, which equated to a 10% decrease from 2023.
Elsewhere, a total of 1,108 non-residential buildings were completed, with a combined floor area of 832,500 square meters.
Looking at the fourth quarter alone, the total production value of construction enterprises was €1.1 billion, a 4% decline on the same period in 2023. Building construction was down by 5% in the quarter, while civil engineering fell by 3%. Read more here.
