Building Permits Plummet: Lowest Level Since 2016.

The number of issued building permits in Croatia in January fell to just 512, the lowest monthly level since 2016 and nearly half of what it was in the same month last year. This briefly brought the construction sector back to levels recorded during the crisis of the mid-last decade.

According to DZS data, by types of buildings, 89.3 percent or 457 permits were issued for buildings, and 10.7 percent or 55 permits for other constructions, such as roads, railways, pipelines, bridges, sports fields, etc. The permits issued in January of this year have an anticipated value of works amounting to 400.9 million euros, which is 13 percent less compared to January 2025. Of this, 323.9 million euros pertains to buildings, and 77 million euros to other constructions.

By types of works, 77.4 percent of permits or 396 were issued for new construction, while 116, or 22.6 percent, were for reconstructions. The issued building permits in January 2026 anticipate the construction of 698 apartments, which is 52.5 percent less than in January 2025.

While the number of permits sharply declined in January, the total for the entire previous year was approximately the same as the year before – just about a hundred less. However, on the other hand, the number of apartments planned for construction was higher. Specifically, in 2025, permits were issued for the construction of 21,809 apartments, which is about 1,400 more than a year earlier.

The highest number of apartments covered by issued permits was in September, with as many as 3,807, or 2.5 more than the monthly average, likely due to the announced amendments to the GUP of Zagreb that brought stricter construction rules. The number of apartments for which building permits were issued has gradually declined since then. It is possible that this spike in September ‘pulled’ some projects forward, causing the number of apartments covered by permits in the months following September to gradually return to normal levels.

Considering that more permits were issued in 2024 and 2025 than in previous years (2021 had about 16,500 apartments, and 2022 and 2023 had about 19,000), a higher number of constructed apartments can be expected in the coming years.

In other words, despite a weak start to 2026, the statistics on building permits indicate that the supply of new apartments on the market could grow in the next two to three years. According to DZS data, in 2024, 16,654 apartments were constructed, which approximately corresponds to the number of apartments for which building permits were issued in 2021.