DZS: Strong increase in number of building permits heralds sector recovery

A total of 697 building permits were issued in Croatia in May 2016, which was 36.1% more than in May 2015, according to the latest figures from the National Bureau of Statistics (DZS).

Broken down by type of construction, 79.3% of the permits, or 553,  were issued for buildings and 20.7% (144 permits) for other types of construction such as roads, railways, pipelines, bridges, dams, and sports facilities.

By type of work, the largest number of permits, 493 or 70.7%, were issued for new builds, and 204 or 29.3% for reconstruction.

The permits were issued for work valued at HRK 1.39 billion, which was 4.1% less than in May 2015.

The number of building permits issued in the first five months of this year, compared with the same period of last year, increased by 21.1% to 2,988. 

Indicators show that the construction sector has finally hit rock bottom, giving rise to expectations of a mild recovery starting in the next period. Following subdued state sector investment activity in the first quarter of the year, a positive impact is expected in the period ahead with the improved absorption of EU funds, analysts at Raiffeisenbank Austria (RBA) say in their comment on the DZS report.

Last update: Tue, 19/07/2016 - 11:20

More from Croatia

PM: Croatia must be leader in resolving problems in region

Croatia has great political responsibility as a stabilising factor in the region and a member of NATO and the EU,...

Interior Ministry dismisses HRW's claims that police are forcing aslyum seekers back to Serbia

The Croatian Ministry of the Interior on Friday dismissed as untruths and insinuations the claims by Human Rights...

French airlines and tour operators expanding their services to Croatia

French low-cost airlines Volotea and Transavia and online travel agency Karavel plan to expand their services to...

EUR 7 mln grant ensured for reconstruction of Osijek fortress

An agreement was signed on Friday in Osijek for a 7 million euro (about HRK 52 million) from the Europe Union for a...

Ukrainian president sees Croatia as trustworthy partner

Croatia is a trustworthy partner of Ukraine and we find Croatia's experience valuable in our struggle for...