Serbia recorded a 30.5% year-on-year increase in completed dwellings during the first half of 2026, even as construction-site employment and hours worked declined, according to official statistics covering construction activity on Serbian territory.
The number of workers employed on construction sites fell by 1.3%, while hours worked decreased by 1.4% over the same period. The figures show an increase in recorded housing completions alongside lower labour input, although they do not establish a corresponding rise in productivity, as completed properties may reflect work carried out over several preceding quarters or years.
Housing Pipeline Continues to Expand
Building permit data indicate that developers are preparing further residential projects. The number of planned dwellings increased by 14.6% between January and July, despite limited workforce growth across parts of the construction sector. The expanding pipeline adds to the demands facing contractors as they plan staffing, subcontracting and project schedules. A higher number of planned homes does not, by itself, establish how quickly projects will enter construction or be completed.
Building Development Outperforms Civil Engineering
Construction activity also varied significantly between market segments during the first half of 2026. Building works increased by 22.6% in real terms, while civil engineering activity declined by 14.1%. This divergence reflects the uneven distribution of activity across the sector, with building development expanding while civil engineering contracted. The differences are relevant to contractors managing distinct project types and labour requirements.
Labour Availability and Project Delivery Risks
For construction lenders, declining workforce numbers and hours worked raise questions about subcontractor availability, project scheduling and the reliability of completion forecasts. These factors are relevant when assessing whether contractors have sufficient resources to deliver projects within planned budgets and timelines. A larger residential development pipeline could support demand for engineering services, building systems, electrical installations and specialised subcontractors. However, the concentration of construction activity in major development centres may intensify competition for experienced workers.
For financiers, a key consideration is whether individual projects have realistic construction schedules and secured contractor capacity, or whether their budgets assume that growing order books can be delivered without additional labour and other resources.
