Stronger Growth of Residential Construction in Zagreb

In Zagreb, 774 building permits were issued last year, which is 16 percent more than the previous year, with the projected value of works increasing by just over 20 percent, and the planned number of apartments rising by 57 percent, according to city statistics.

According to the Department of Statistics of the City Office for Strategic Planning and Development, last year 558 building permits were issued for buildings in Zagreb, and 216 for other constructions, which represents annual increases of 15.1 and 18.7 percent, respectively.

>>> Construction activities slowed in 2017.

The total projected value of works for the building permits issued last year was 3.57 billion kuna, which is a fifth, or 20.5 percent more than in 2016.

City statistics for last year indicate a stronger growth of residential construction in Zagreb.

Namely, the building permits issued last year projected the construction of 3,170 apartments, which is an increase of 57.2 percent or 1,154 apartments more than in 2016.

This is also more than was projected by the building permits issued in the two years prior, considering that the permits issued in 2016 planned the construction of 2,016 apartments, and in 2015 only 995, totaling 3,011 apartments in those two years.

By type of construction, last year the majority of permits, 528 in Zagreb, were issued for new construction, with a projected value of works of 2.3 billion kuna.

>>> DZS: The construction sector is recovering, increase in works and orders (2017)

For reconstructions, 246 building permits were issued with a projected value of works of about 1.3 billion kuna.

According to investors, last year more than half of the building permits related to legal entities – 424 building permits were issued to them, which is 19.4 percent more than the previous year, while the projected value of works for those permits increased by 24.6 percent, to 3.19 billion kuna.

Slightly more than half, or 215 building permits issued to legal entities, relate to other constructions, 123 permits were granted for residential buildings and 86 for non-residential buildings.

Citizens, or natural persons, in Zagreb were issued 350 building permits last year, with a projected value of works of 378.6 million kuna based on those permits.

City statistics show that the number of building permits issued to citizens in 2017 compared to 2016 increased by 12.2 percent, but the projected value of works simultaneously decreased by 5.3 percent.

>>> In the new issue of Lider – Pelješac Bridge: Croatian construction companies will barely be able to be subcontractors

Citizens primarily sought building permits for the construction of residential buildings, for which they received 328 permits last year in Zagreb, while 28 permits relate to non-residential buildings, and one permit for other constructions.

According to Zagreb statistics on construction works and orders, last year the value of completed works amounted to 6.86 billion kuna, of which 4.5 billion kuna relates to works performed with in-house workers, and 2.4 billion kuna to works performed with subcontractors.

The value of consumed materials, finished products, fuel, and energy last year amounted to nearly 1.7 billion kuna.

While the value of completed works last year of 6.86 billion kuna decreased by about four percent compared to the previous year, the value of new orders for construction works increased by 8.1 percent, to 5.8 billion kuna.

The structure of new orders by types of constructions shows that 58.4 percent of new orders relate to other constructions, while 41.6 percent relates to the value of orders for buildings.