Overall construction activity
The Croatian economy has continued to expand, supported by strong domestic demand, tourism revenues, EU-funded investments and labour market resilience. GDP at current prices is estimated at €93.0 billion in 2025 and is forecast to exceed €100.7 billion in 2026. Construction remains one of the fastest-growing sectors of the economy. Gross value added in construction increased from €3.3 billion in 2022 to €5.5 billion in 2024 and is expected to reach approximately €6.4 billion in 2026.
Employment in construction has also grown steadily, rising from around 135,000 persons in 2022 to more than 162,000 in 2025, with a further increase expected in 2026. The sector continues to benefit from EU cohesion and recovery funds, infrastructure investments and strong demand for residential and tourism-related projects. However, labour shortages and rising labour costs remain major constraints.
Housebuilding
Residential construction remains supported by strong housing demand, although infrastructure and publicly financed projects continue to represent the strongest drivers of overall construction activity in Croatia. Building permits for residential projects increased from 17,110 dwelling units in 2022 to 18,709 in 2024 and are estimated to exceed 20,000 units in 2025. The strongest growth is recorded in multi-family housing, reflecting continued urbanisation and housing demand in major cities and coastal regions.
Although higher interest rates moderated private investment decisions during 2024 and 2025, demand remains supported by rising incomes, investment in tourism-related accommodation and continued interest in real estate as an investment asset. New residential construction is expected to remain positive in 2026, while renovation activity is increasingly supported by energy-efficiency programmes and EU funding schemes.
Non-residential construction
Non-residential construction has benefited from investments in tourism facilities, industrial premises, logistics centers and public buildings. Strong absorption of EU funds has supported projects in education, healthcare and public administration. The sector has shown greater resilience than in many other European countries thanks to continued public investment and relatively favourable economic growth.
Industrial and commercial building activity is expected to remain stable in 2026. Demand for modern logistics facilities and tourism infrastructure continues to support investment, while office construction remains more moderate. Overall, non-residential construction is expected to maintain positive growth, although at a slower pace than in recent years.
GDP 2025
BILLION
POPULATION 2025
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Total investment in construction in 2025
BILLION
Civil engineering
Civil engineering remains the strongest segment of the Croatian construction market. Large investments in transport infrastructure, railway modernisation, roads, ports, water management systems and energy networks continue to drive activity. Significant funding from the European Union, including the Recovery and Resilience Facility and Cohesion Policy programmes, supports a large pipeline of infrastructure projects.
Growth is expected to continue in 2026, although at a more moderate pace as some major projects move into later stages of implementation. Continued investments in energy transition, water infrastructure and transport connectivity are expected to sustain demand over the medium term.
Prices of construction materials
Construction material prices have stabilised compared with the sharp increases experienced in 2021–2023. During 2024 and the first half of 2025, steel and timber prices generally remained below 2023 levels, while cement prices continued to increase moderately. Bitumen prices showed higher volatility due to developments in international energy markets.
Although supply chain disruptions have largely eased, contractors continue to face uncertainty regarding energy costs, transport expenses and labour costs. Overall, price pressures remain lower than in previous years but still represent a significant challenge for project planning and profitability.
Business registration and bankruptcy
Entrepreneurial activity in the Croatian construction sector remains strong. The number of newly registered construction companies increased from 4,864 in 2023 to 5,216 in 2024. For 2025, registrations are estimated at approximately 5,162 companies, indicating a stable level of market entry.
At the same time, bankruptcy declarations remain relatively elevated. After 923 cases in 2024, the number is estimated at around 828 in 2025. While the sector continues to attract new businesses, rising operating costs, labour shortages and financing challenges are increasing pressure on less competitive firms.
Number of building permits in residential construction
