In the first four months of 2025, Croatia’s construction sector showed moderate growth amid a slowdown in overall economic growth and changes in legislation. Despite the existing challenges, investments in infrastructure and renewable energy sources are supporting the positive dynamics of the industry.
Key indicators for January–April 2025
Growth in construction output: In February 2025, the volume of construction work increased by 8.7% compared to the same period last year.
New construction orders: In the first half of 2024, the value of new construction orders rose by 14.9% year-on-year, laying the foundation for activity in early 2025.
Gross value added: According to data from December 2024, gross value added in construction reached a record €1,450.5 million. Factors influencing the market
Infrastructure investment: Support from the European Investment Bank, including a €400 million loan, is helping to develop transport and energy infrastructure.
Development of renewable energy sources: The construction of solar and geothermal power plants, such as the 150 MW SE Promina project, is stimulating demand for construction services.
Legislative changes: The introduction of new property taxes and restrictions on short-term rentals create uncertainty for investors and may hold back growth in some market segments.
Forecast for the end of 2025
Expected growth: Croatia’s construction industry is projected to grow by an average of 2.4% in real terms in 2025, with growth supported by investments in infrastructure and energy.
Risks and challenges: A slowdown in economic growth, particularly in Germany, could negatively affect Croatian tourism and, consequently, the construction sector. Thus, despite the existing challenges, the Croatian construction market is showing resilience in 2025, supported by public and private investment in key infrastructure projects.
