Significant decline in building permits at start of 2026

Zagreb

Croatia’s construction sector has recorded a notable slowdown at the beginning of 2026, with newly released figures showing a sharp decline in the number of building permits issued.

In February 2026, a total of 722 building permits were issued, representing a decrease of 25.5% compared to the same month in 2025, the Croatian Bureau of Statistics said in a statement today.

The downward trend is even more pronounced when looking at the first two months of the year, with the total number of permits issued between January and February falling by 35.1% year-on-year.

Majority of Permits Still for Buildings

Despite the overall decline, the structure of issued permits remains largely unchanged. Of the total permits granted in February:

• 90.0% were issued for buildings

• 10.0% were for other types of construction projects

This indicates that traditional building projects continue to dominate Croatia’s construction activity.

New Builds Continue to Lead

New construction remains the primary focus within the sector. Data shows that:

• 80.2% of permits were issued for new builds

• 19.8% were for reconstruction or renovation projects

This suggests that, despite the slowdown, developers are still prioritising new developments over upgrades to existing structures.

Over 1,200 New Flats Planned

According to the February permits, the construction of 1,266 flats is planned. The average size of these units is 93.6 square metres, pointing to a continued preference for relatively spacious residential properties.

Signs of Cooling Construction Activity

The latest figures point to a cooling in Croatia’s construction pipeline, particularly when compared to the strong activity levels seen in 2025. The drop in permits could signal a combination of factors, including changing market conditions, rising costs, or shifts in investment patterns.

While new builds continue to dominate and housing projects remain in the pipeline, the decline in permits suggests that the pace of future construction may slow in the months ahead.

The coming quarters will be key in determining whether this trend represents a temporary dip or a longer-term adjustment in Croatia’s construction sector.