Serbia’s construction activity expanded sharply in the second quarter, driven by a strong increase in building work while infrastructure and industrial construction recorded a decline.
The value of construction work increased 9.0% in real terms year on year, following a 9.7% contraction in the first quarter. Building construction surged 32.4%, while work involving roads, pipelines, complex industrial facilities and other civil-engineering structures decreased 7.1%.
Construction permits indicate continued project activity
Construction permits continued to provide a positive forward indicator. Serbia issued 7,418 permits during the quarter, representing a 6.8% increase from a year earlier. The projects covered by those permits had an estimated value of RSD 251.85 billion, equivalent to approximately €2.15 billion at the exchange relationship used in the publication. Of the total permits, 6,072 were issued for buildings, while 1,346 covered infrastructure and other structures.
Regional distribution of planned construction
Belgrade accounted for 32.9% of the total projected construction value. Southern and Eastern Serbia represented 28.9%, followed by Vojvodina with 24% and Šumadija and Western Serbia with 14.2%. The second-quarter figures show that the construction recovery was concentrated in building activity, while infrastructure and industrial construction remained in decline.
