Construction Permits Boom in Croatia: Building Frenzy or Just Misleading Numbers?
In May this year, Croatia issued 1 construction permit, marking a 4.1% increase compared to the same month last year. Yes, you read that right – nearly 2000 apartments are planned for construction! But is this a real sign of a construction boom or just numbers that sound better than they are?
What’s Actually Being Built?
Out of all permits, 90% are for buildings, while the remaining 10% cover roads, railways, pipelines, bridges, and sports fields. On an annual basis, the number of building permits increased by 5.9%, while permits for other structures decreased by 10%. The projected value of works in May is a staggering 1.3 billion euros, which is 27.1% higher than last May. Of this, 1.2 billion euros is for buildings, and 89.9 million euros for other structures.
New Construction or Renovation?
Most permits, exactly 80%, were issued for new construction, while 20% were for renovations. Although the number of permits for apartments in May dropped by 0.3% compared to last year, a total of 4 construction permits were issued in the first five months of this year, just 1% less than the same period last year. The projected value of works for the first five months is 2.85 billion euros, a 2% decrease compared to last year.
What Does This Mean for Us?
At first glance, the numbers sound like Croatia is entering a construction boom. But if you dig deeper, the growth in permits is modest, and the value of works has even slightly declined in the first five months. Is this just a temporary spike or a sign of stable growth? Time will tell.
Why Does This Matter?
The construction industry is a key sector for Croatia’s economy. More permits mean more jobs, more apartments, and potentially lower real estate prices. But if permits don’t turn into actual construction, it’s all just on paper.
Conclusion
Croatia got nearly 2000 permits for apartments in May, but the drop in total permits and the slight decline in the value of works in the first five months cast a shadow on optimism. Is this the start of a construction boom or just a numbers game? Only time will tell.
So, what do you think? Is Croatia about to explode in a construction frenzy, or are these just numbers fooling us? Drop a comment, maybe together we’ll figure out what’s really going on!
