The building contract value of orders received by architects rose by just over 37 percent in the first half of 2014. These orders also helped push up turnover of architects’ bureaus, although this is still 50 percent below the level of 2008.
Value of new orders for residential and non-residential construction
Orders pick up for new houses in particular
In the second quarter of 2014, the total building contract value of new orders received rose by just over 26 percent. This value has been rising since the third quarter of 2013. The value of orders concerning new housing in particular is rising, although it has yet to regain its pre-crisis level. The value of commissions for home renovation has managed better to retain its level somewhatin recent years. Architects are the first link in the construction chain. The orders they receive are an important indicator for future construction activity.
Architects’ turnover still 50 percent lower than in 2008
The increase in the value of orders is reflected in the turnover of architects’ bureaus. In the first half of the year, turnover in this sector was on average 2.9 percent higher than in the same period last year. In the period 2009-2013, turnover of architects decreased continuously. Average turnover in the sector was nearly 50 percent lower in 2013 than in 2008.
Together with the upturn in house prices and the increasing value of building permits, the fuller order portfolios of architects are another bright spot for the construction sector, which has had a very difficult first six months.