Construction activity in Serbia is slowing down after several years of robust growth, affecting both residential building and transport infrastructure sectors.
Since mid-2024, the construction sector has shown signs of cooling off:
- Residential construction, which was a key driver of growth in recent years, appears to be slowing. The total floor area of residential buildings for which construction permit applications were submitted decreased by 4.4% year-on-year in 2024 and by 6% in January 2025, compared to a 3.6% increase in 2023.
- Construction of transport infrastructure and other public capital investments significantly contributed to overall economic growth and were the main growth factors in the construction sector in 2024. However, growth in this segment now seems to be slowing sharply. The value of permits for transport infrastructure projects declined notably in recent months, possibly due to current political uncertainties. For example, the value of permits for transport infrastructure projects between November 2024 and January 2025 dropped by as much as 25% year-on-year.
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