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

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