Croatia’s construction sector continues to grow, now 7% of GDP

Croatia’s construction industry is maintaining its upward trajectory, driven largely by a surge in residential building.

After a strong 2024, which saw construction output increase by nearly 16% and employment rise by 7%, the sector continues to expand.

This year, the number of construction permits issued has grown by a further 3%, with almost 60% relating to new housing projects.

Across Zagreb, cranes dominate the skyline as both new builds and renovations progress at pace.

“There’s no shortage of work or orders. Compared with last year, our revenue will be 10 to 15% higher, and we’re currently managing around 70 construction sites with a workforce of 1,000,” Mirko Habijanec, CEO of Radnik and President of the Croatian Employers’ Association’s Construction Division (HUP), told HRT.

“We’re engaged in both public and private projects, from hotels and hospitals to spa facilities.”

The sector employs more than 150,000 people, generating a total revenue of €15.3 billion in 2024, up 13% year-on-year, according to Katarina Sikavica, Director of the Construction Sector at the Croatian Chamber of Commerce (HGK). “All indicators are showing positive trends,” she added.

However, industry leaders have voiced concerns over proposed amendments to the Public Procurement Act, calling for full alignment with EU regulations and protection from unfair competition and dumping prices, particularly from China and Turkey.

HUP is urging the government to reopen consultations and ensure a transparent review process.

Meanwhile, major urban projects are advancing. The construction phase of the Paromlin redevelopment, which will soon house Zagreb’s new city library, is set to finish by summer.

Nearby, work continues on transforming the former Gredelj site, where derelict buildings are being demolished to make way for parking and new public spaces.

“We’re planning sports and recreation areas and outdoor concert spaces, which the public will see soon,” said Deputy Mayor Luka Korlaet.