MASTERBUILD reaches a business volume of RON 74 million and forecasts 25% growth this year

MASTERBUILD – General Contractor & Developer reports a 74 million RON turnover for the fiscal year 2022 and forecasts a 25% increase this year, given the contracts signed in the first 4 months of this year.

Although the construction market is facing major, fast-impacting issues such as shortages of building materials and constant legislation changes, MASTERBUILD has a pipeline of new construction works of almost 200,000 sqm, representing contracts already signed in the first months of the year or under negotiation.

58% of the demand last year came from the retail sector (retail parks, shopping centers, retail stores formats), 15% from the logistics segment (logistics parks and industrial or manufacturing facilities) and 27% from the public works segment. This year, the trend continues, with a significant volume of demand for new construction recorded mainly in retail and manufacturing (factories and production facilities of international and local operators). The public segment also continues to invest this year, with projects financed through PNRR and other public sources, continuing to generate demand in construction.

Among the legislative changes that have put pressure on the construction activity in the last year is the elimination of tax facilities for construction employers, together with the increase of the minimum gross wage in the country from 3,000 to 4,000 lei (OUG 16/2022, OUG 168/2022). As construction contracts are carried out within fixed budgets, some of the legislative changes have intervened during the contract period, transferring new fiscal pressures and associated costs to construction companies. With the main aim of increasing the level of tax collection, the recent measures did not take into account the reality of the construction market, adding more pressure on a sector already marked by inflationary pressures and bottlenecks in the building materials market, according to MASTERBUILD specialists.

“The construction market is still going through an unstable period, but investors’ appetite remains high in Romania, compared to Western European markets (countries such as Germany or Austria) which are currently blocked from the investment point of view. EC economic forecasts indicate a 2.5% growth in 2023 and 3% in 2024 and construction investments are certain to continue in the context of deglobalization and trends such as nearshoring and the need for Romania to strengthen its position in the region. Although international investors remain cautious, Romania is an important investment stake in the region and construction companies who focus on development, investment, and added value will make the difference on the market in the coming period,” says Ștefan Ferdinand Vayna, CEO MASTERBUILD – General Contractor & Developer.

By 2023, the company’s objective is to maintain the share of retail, manufacturing, logistics, and military or government infrastructure projects in its total business volume and to achieve its growth target of 25% by the end of the year.

MASTERBUILD is one of the 40 largest construction companies in Bucharest and is ranked in the top 100 nationally, according to termene.ro.

MASTERBUILD is an industrial and logistics construction and development company, active since 2005 in both industrial construction and commercial and residential projects. A Romanian entrepreneurial company, it is active both throughout Romania and in international markets and has so far signed over 1 million square meters built. Among the most recent projects signed MASTERBUILD include 65,000 sqm of shopping centers and retail stores, 12,000 sqm of logistic and industrial projects, or institutional works such as the new Research Centre in Aerospace Green Technologies in Craiova (I.N.C.A.S. – National Institute for Aerospace Research – Development “Elie Carafoli”).