Serbia’s construction activity returned to growth in the second quarter, driven by a sharp increase in building work while infrastructure and industrial construction continued to contract. The value of construction work rose 9.0% in real terms year on year, reversing a 9.7% decline in the first quarter.
Building Construction Drives Sector Recovery
Building construction recorded a 32.4% increase, providing the main contribution to the sector’s recovery. By contrast, construction involving roads, pipelines, complex industrial facilities and other civil-engineering structures declined 7.1% from a year earlier. The contrasting performance left overall construction output higher despite continued weakness in infrastructure and industrial projects.
Construction Permits Point to Continued Activity
Forward-looking construction indicators remained positive during the quarter. Serbia issued 7,418 construction permits, representing a 6.8% increase year on year. The projects covered by those permits had an estimated total value of RSD 251.85 billion, equivalent to approximately €2.15 billion at the exchange relationship used in the publication. Buildings accounted for 6,072 permits, while 1,346 permits covered infrastructure and other structures.
Belgrade Holds Largest Share of Projected Value
The geographic distribution of permitted projects varied across Serbia. Belgrade accounted for 32.9% of the total projected value, followed by Southern and Eastern Serbia with 28.9%.
Vojvodina represented 24%, while Šumadija and Western Serbia accounted for 14.2% of the projected construction value. The quarterly figures show a recovery concentrated in building activity, while infrastructure and industrial construction remained the weaker segment of the construction market.
