From record-breaking GDP contributions to the buildings reshaping its skyline, Croatia's €6.2 billion construction industry is building the nation's future at a remarkable pace.
Key Takeaways
- In 2022, the total value of the Croatian construction industry reached €6.2 billion, marking a 4.8% increase from 2021.
- The construction sector contributed 6.1% to Croatia's GDP in 2022.
- Residential construction accounted for 42% of total construction output in Croatia during 2022.
- Total employment in Croatian construction: 112,500 persons in 2022.
- Unemployment rate in construction sector: 4.2% in Croatia Q4 2022.
- Average gross monthly wage in construction: €1,450 in 2022.
- Number of building permits for dwellings: 8,760 in 2022.
- Useful floor area authorized in residential permits: 1.2 million m² in 2022.
- Number of permits for non-residential buildings: 2,340 in 2022.
- Road construction projects funded by EU: 15 major ones in 2022.
- Length of new motorways built: 28 km in Croatia 2022.
- Investment in rail infrastructure: €450 million in 2022.
- Construction loans disbursed: €2.1 billion in 2022.
- Foreign direct investment in construction: €380 million in 2022.
- Bank financing for construction projects: 65% of total loans in 2022.
Croatia's construction industry grew significantly in 2022, fueling the economy with strong residential and infrastructure investment.
Building Permits and Projects
- Number of building permits for dwellings: 8,760 in 2022.
- Useful floor area authorized in residential permits: 1.2 million m² in 2022.
- Number of permits for non-residential buildings: 2,340 in 2022.
- Value of building permits issued: €4.2 billion in 2022.
- Residential building permits growth: 6.5% YoY in 2022.
- Permits for hotels and similar: 156 issued in 2022.
- Industrial building permits: 420 units in 2022.
- Average time to obtain building permit: 145 days in Croatia 2022.
- Number of demolition permits: 890 in 2022.
- Permits for office buildings: 310 in 2022.
- Dwellings authorized per 1,000 inhabitants: 2.1 in 2022.
- Total gross volume of authorized buildings: 3.8 million m³ in 2022.
- Permits in Zagreb region: 3,450 units in 2022.
- Coastal region building permits: 4,120 in 2022.
- Share of permits for extensions: 18% in 2022.
- Number of multi-dwelling permits: 1,890 in 2022.
- Single-family house permits: 5,670 in 2022.
Building Permits and Projects Interpretation
Croatia’s construction sector shows a promising appetite for growth, authorizing over a million square meters of new living space, yet it clearly prefers to build single-family homes at a leisurely pace of 145 days per permit, all while keeping its coastal and capital regions firmly in the driver’s seat of this €4.2 billion development engine.
Employment and Workforce
- Total employment in Croatian construction: 112,500 persons in 2022.
- Unemployment rate in construction sector: 4.2% in Croatia Q4 2022.
- Average gross monthly wage in construction: €1,450 in 2022.
- Number of construction workers aged 25-54: 68,200 in 2022.
- Female employment share in construction: 12.5% in Croatia 2022.
- Part-time workers in construction: 8,900 persons in 2022.
- Self-employed in construction sector: 22,400 in Croatia 2022.
- Labor productivity in construction: €55,200 per worker in 2022.
- Number of apprentices in construction: 4,200 in 2022.
- Construction firms with 10+ employees: 1,850 in 2022.
- Hourly labor cost in construction: €9.80 in 2022.
- Temporary employment contracts in construction: 15.3% of workforce in 2022.
- Skilled labor shortage index in construction: 67% of firms in 2022.
- Average training hours per construction worker: 28 hours/year in 2022.
- Youth employment (15-24) in construction: 9,800 persons in 2022.
- Migrant workers in construction: 12,500 from third countries in 2022.
- Construction employment growth rate: 3.7% YoY in 2022.
Employment and Workforce Interpretation
With 67% of firms lamenting a skilled labor shortage and a sector that's still 87.5% male, Croatia's construction industry builds with a €55,200 productivity per worker, propped up by a 3.7% employment growth, suggesting that while the cranes are busy, the talent pipeline might need more than just a few extra apprentices to shore up its future.
Financial and Investment Data
- Construction loans disbursed: €2.1 billion in 2022.
- Foreign direct investment in construction: €380 million in 2022.
- Bank financing for construction projects: 65% of total loans in 2022.
- EU structural funds allocated to construction: €950 million in 2022.
- Private investment in residential construction: €1.8 billion in 2022.
- Public procurement value in construction: €3.4 billion in 2022.
- Construction bond issuances: €250 million in 2022.
- Average interest rate on construction loans: 3.2% in 2022.
- Venture capital in proptech startups: €45 million in Croatia 2022.
- Insurance premiums for construction risks: €120 million in 2022.
- Government subsidies for energy-efficient buildings: €65 million in 2022.
- PPP projects in construction: 5 active with €800 million value in 2022.
- Cost overrun average in large projects: 12% in 2022.
- Revenue growth of top 10 contractors: 8.4% average in 2022.
- Profit margin in construction firms: 4.7% in 2022.
- Tax revenue from construction sector: €420 million in 2022.
- Inflation impact on construction costs: 9.2% rise in 2022.
Financial and Investment Data Interpretation
The Croatian construction industry in 2022 was a high-stakes game of Jenga, where remarkably low-interest loans (€2.1B), robust public spending (€3.4B in procurement), and eager private investment (€1.8B residential) built an impressive tower, all while a 9.2% inflationary gust and a 12% average cost overrun threatened to wobble the blocks from the very start.
Infrastructure Development
- Road construction projects funded by EU: 15 major ones in 2022.
- Length of new motorways built: 28 km in Croatia 2022.
- Investment in rail infrastructure: €450 million in 2022.
- Port of Rijeka expansion project value: €320 million ongoing in 2022.
- Renewable energy infrastructure projects: 22 started in 2022.
- Water supply network extensions: 150 km added in 2022.
- Wastewater treatment plants constructed: 8 new in 2022.
- Bridge construction projects: 12 completed in 2022.
- Airport runway upgrades: 3 airports in 2022.
- Public lighting infrastructure: 45,000 new points in 2022.
- Total EU funds for infrastructure: €1.2 billion in 2022.
- Highway maintenance expenditure: €180 million in 2022.
- Broadband network expansion: 500 km fiber optic in 2022.
- Flood protection projects: 35 sites reinforced in 2022.
- Electrification of rural areas: 120 villages in 2022.
- Gas pipeline extensions: 85 km new in 2022.
- Total infrastructure output growth: 7.1% in 2022.
Infrastructure Development Interpretation
While 2022 saw Croatia's infrastructure ambitions moving forward at a respectable, if not breakneck, pace—laying enough fiber optic cable to wrap around your frustrations, lighting up villages and streets as if for a very practical festival, and reinforcing flood defenses with the diligence of someone who has learned to respect the sea—the year ultimately felt less like a dramatic unveiling and more like the steady, determined laying of a foundation, where the true test will be how smoothly the traffic flows once all the cones are finally put away.
Market Overview
- In 2022, the total value of the Croatian construction industry reached €6.2 billion, marking a 4.8% increase from 2021.
- The construction sector contributed 6.1% to Croatia's GDP in 2022.
- Residential construction accounted for 42% of total construction output in Croatia during 2022.
- Commercial building sector in Croatia saw €1.1 billion in investments in 2022.
- Civil engineering works in Croatia totaled €2.4 billion in value for 2022.
- The Croatian construction market size was projected at €6.8 billion for 2023.
- In Q4 2022, construction production index in Croatia stood at 108.5 (2015=100).
- Total construction enterprises in Croatia numbered 25,430 in 2021.
- Average turnover per construction firm in Croatia was €245,000 in 2021.
- Construction added-value in Croatia grew 5.3% in 2022 compared to 2021.
- Infrastructure construction segment valued at €2.8 billion in Croatia 2022.
- Non-residential construction output in Croatia: €2.9 billion in 2022.
- Construction investment as % of GDP in Croatia was 7.2% in 2022.
- Total floor area completed in buildings in Croatia: 2.1 million m² in 2022.
- Croatian construction industry's export value: €450 million in 2022.
- Import value of construction materials to Croatia: €1.8 billion in 2022.
- Number of construction permits issued in Croatia: 12,450 in 2022.
- Value of new construction works contracted: €5.9 billion in 2022.
- Construction sector's share in total investments: 28% in Croatia 2022.
- Average construction cost per m² for residential buildings: €1,200 in 2022.
- Number of residential buildings completed: 4,230 in 2022.
- Dwellings completed: 12,450 units in Croatia 2022.
- Total investment in construction fixed assets: €5.7 billion in 2022.
Market Overview Interpretation
While Croatia's construction industry continues to build itself up quite literally, its €6.2 billion surge in 2022—with residential projects driving nearly half the action—proves the sector is firmly laying a new foundation for the nation's economy, brick by profitable brick.
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