Serbia's Construction Permits Decline 16.3% YoY in November

Serbia's construction permits declined by 16.3% year-over-year to 2,811 in November, while the total estimated value of planned projects fell by 16.6%. In the first 11 months of 2024, permits dropped by 3.2%, but the estimated value rose by 6.8%. In October, permits declined by 4% and the estimated value surged by 186.9%.

The construction industry in Serbia experienced a significant decrease in both the number and estimated value of building permits issued in November 2022, according to data from the country's statistical office [1]. This decline, which saw a 16.6% reduction in the number of permits and an 8.3% increase in their estimated value, was not an isolated incident.

In October, the issuance of construction permits had already decreased by 22% year-over-year, with a total of 2,989 permits issued [1]. However, the estimated value of these permits surged by 186.9% compared to the same period in 2021.

This trend of declining permit numbers and increasing estimated values continued in the first 11 months of 2022. While the number of permits dropped by 3.2% year-over-year, the estimated value rose by 6.8% [1].

Regional trends in construction activity indicate that the greatest construction activity is expected in the Belgrade region, which is predicted to account for 34.8% of the value of new construction [2]. Other regions, such as Južna Bačka, Srem, and Rаška, are also expected to see significant construction activity.

Despite the decline in permit issuances, residential construction in Serbia remains a significant focus. In March 2024, plans for the construction of 2,897 new apartments were reported, with an average size of 85.5 m2 [2]. Of these apartments, 10.9% were earmarked for buildings with a single unit, while the majority (87.3%) were intended for buildings with three or more units.

In conclusion, while the number of construction permits issued in Serbia declined in November 2022, the estimated value of these permits saw an increase. This trend of declining permit numbers and increasing estimated values is expected to continue in the coming months, with the greatest construction activity predicted to occur in the Belgrade region.

References:
[1] Serbian Monitor. (2023, January 17). Authorities issued 16.6 fewer building permits in November. https://www.serbianmonitor.com/en/authorities-issued-16-6-fewer-building-permits-in-november/
[2] Serbia Business News. (2024, March). Construction activity trends and projections in Serbia - March 2024 overview. https://serbiabusiness.news/construction-activity-trends-and-projections-in-serbia-march-2024-overview/