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ARCHITECTURE: The first 50 design offices hold 50% of the market share

Currently, in Romania, there are enrolled approximately 7,000 architects, out of which only 4,909 are entitled to sign, according to the data of the National Order of Architects (ONA). Most of them are active in Bucharest, an area that focuses more than 30% out of the total construction work nationwide, according to the data provided by the design offices (another places that concentrate a high amount of construction works are the counties of Constanta, Cluj, Sibiu, Arad, Mures and Timis). The top 50 largest specialized offices generate over 50% of the total national market design. Their work is the most obvious indicator of the construction segment in Romania, a sector which has experienced significant declines though it continues to be one of the main generators of added value to the GDP. Thus, according to the information of National Order of Architects (ONA), the profit made by design offices on the local market fell from 29% out of the turnover in 2007, the industry's peak year, to 5.1% in 2012.
However, there is a revival of the design industry compared to the previous years. "Knowing that any construction investment involves also design activities, this segment is worth pursuing and quantified both economically and qualitatively", said architect Bruno Andresoiu, founder of the Igloo Media publishing company and partner of Igloo Architecture Company. The demand contracted on the local architecture market in the period 2007-2012 by 33%, from 785 million RON to 523 million RON. For 2013, most of the architects reported a stagnation at the level of 2012, i.e. about 117 million EUR. The steep decline in the area generated a reduction of profits for the design which preferred to retain their highly qualified labour force, despite a decline in revenues. According to an analysis made by IMAS for the National Order of Architects (ONA), in 2012, the gross profit of specialized companies came under the bank interest. Furthermore, the economic capital decreased considerably.
 

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