In May 2024, seasonally adjusted construction production declined by 0.9 percent in the Eurozone and 1 percent in the EU, according to preliminary estimates from Eurostat. This follows a 0.4 percent drop in the Eurozone and stable conditions in the EU in April.
Year-on-year, May 2024 saw a decrease in construction production of 2.4 percent in the Eurozone and 2.5 percent in the EU. In the Eurozone, building construction fell by 1 percent and specialized construction activities dropped by 1.1 percent compared to April. The EU experienced a 0.9 percent decline in building construction and a 1 percent drop in specialized construction activities.
Among EU member states with available data, the Czech Republic, Romania, and Hungary saw the largest monthly declines in construction production, with decreases of 5.1 percent, 4.1 percent, and 3.8 percent, respectively. Conversely, Finland (+1.9 percent), Bulgaria (+1.1 percent), and Belgium and Spain (both +3 percent) reported the highest growth.
Annually, the Eurozone experienced a 4.8 percent reduction in building construction and a 1.8 percent decrease in specialized construction activities in May 2024 compared to May 2023. The EU saw similar declines, with 4.8 percent for building construction and 1.9 percent for specialized activities. Sweden, Slovenia, and Germany recorded the largest annual declines, with decreases of 7.5 percent, 7.4 percent, and 7 percent, respectively. Hungary, Bulgaria, and Denmark reported increases, with rises of 7.3 percent, 4.4 percent, and 1.1 percent.
Despite the general slowdown in construction across Europe, Serbia’s construction sector appears to be in a different position. In May 2024, Serbia issued 2,461 construction permits, a 2.4 percent increase from the previous year. Of these permits, 81.8 percent were for building construction and 18.2 percent for other structures. Additionally, the permits were for the construction of 2,468 apartments, averaging 76.9 square meters each.
Real estate prices in Serbia have continued to rise, with apartment prices increasing by 4.74 percent in the first quarter of 2024 compared to the same period last year. Prices for older apartments rose by 4.52 percent, while new apartments purchased from investors saw a 5.09 percent increase.
