Analytics, Construction, Estonia, Real Estate

According to Mapri Ehitus, construction volumes in 2019 are expected to stay on the level of last year, while wage pressure in the construction sector is a cause for concern.

Roos said that under conditions was wage pressure, hiring foreign labor is a solution allowing to save on costs.

"The employer must, however, base its actions on law, ensure maximum safety and pay the agreed wage at the agreed time," he said. 

Roos said that there is no room left for a further increase in construction prices, as otherwise many of the more optimistic developments slated for execution now will probably become subject to redesigning or be carried out in stages. 

"Competition for public contracts definitely is intense and many companies may take senseless risks. Those building in the private sector must assess the ability of their clients to successfully carry the project to the end. Therefore the keyword for the current year is risk management. However, for the construction companies which do not take unnecessary risks when it comes to price or deadlines the year 2019 should be a successful one," Roos said.

He described having a diverse portfolio and the ability to start with a project quickly as an asset in the preset situation. 

"Estonian industry is doing well, innovative companies are doing well, and they are the ones that give additional work to the builder," the manager of Mapri Ehitus added.