Croatia saw 697 construction permits granted in May, 36.1 percent more than the same time last year, and although the predicted value of works is significantly smaller than last year, Raiffeisenbank Austria analysts (RBA) feel the construction sector has hit bottom and a recovery can be expected
Data from the National Statistics Institute (DZS) show that out of 697 permits, 79.3% were granted for buildings, while the rest is for railroads, roads, pipelines, bridges, dams, sports fields etc, Tportal.hr reported on July 19, 2016.
By construction type, 70.7% of permits in May were issued for new objects, while the rest was for reconstructions, upgrade, conversions, renovations etc.
Permits granted in May predict the construction value totalling 1.39 billion Kuna, 4.1% less than in May 2015.
“Considering strong oscillations present on a monthly level, the data for May show a visible trend which will strongly mark the number of issued construction permits in the first half of this year,” RBA analysts stated on Tuesday.
DZS data shows there were 2,988 permits issued in the first five months of this year, which is 21.1% more than the same time last year.
Permits granted in the first five months encompass a total construction works value of nearly 7.1 billion Kuna or 18.2% less than last year.
“Nevertheless, we feel the indicators point to the conclusion the construction sector has reached bottom, encouraging expectations of the beginning of a slight recovery in the coming period. After suppressed investment activity from the state sector in the first trimester, a positive effect in the coming periods is expected with better withdrawal of EU funds,” RBA analysis concluded.
