Overall construction activity
The years 2015-2018 were years of gradual growth in construction. In 2019-2021 there will be a decline in construction output. The decline is due to several factors, mainly reduced public investment, the COVID-19 pandemic, a sharp increase in construction costs and lengthy building permit procedures due to outdated construction legislation. In 2022 and 2023, Slovakia's construction output stabilised but remained well below the level of 2018. The construction sector's overall share of Slovakia's GDP falls from 7.5% in 2018 to 4.9% in 2023.
A new construction law was adopted in 2022, which should have come into force on 1 April 2024, but its entry into force was postponed by one year. The modern law reduces procedural and administrative burdens and introduces the digitalisation of approval procedures. Given the growing public investment debt in Slovakia and the programme statement of the new government (after the general elections in September 2023), the construction sector is expected to grow in the coming years.
One of the biggest risks to future development is the shortage of labour due to a decline in the number of employees.
Housebuilding
Slovakia is one of the countries with the lowest number of dwellings per 100 000 inhabitants, with a long-term shortfall of around 350 000 dwellings. The housing shortage is mainly concentrated in economically developed regions.
Housing construction is stable in 2023, mainly due to the high number of new dwellings completed. The bad news is that the number of new building permits issued has fallen significantly and a decline in residential construction is forecast for 2025 and 2026.
Reconstruction, modernisation, repair and maintenance of dwellings also account for a significant share of production in this segment. The number of new non-residential dwellings has shown an increasing trend in recent years.
Non-residential construction
Non-residential construction grew in 2023, particularly in the industrial segment. In line with this development, the total area of completed buildings and their investment costs also increased. This was particularly the case for industrial production buildings.
Also in 2023, the construction of civil buildings - mainly schools, university campuses, medical buildings, sports and cultural facilities, including repairs - stagnated. The government is trying to speed up the construction and repair of public non-residential buildings.
GDP 2023
BILLION
POPULATION 2023
MILLION
Total investment in construction in 2023
BILLION
Civil engineering
Between 2019 and 2021, the civil engineering segment experiences a significant decline in the volume of work performed, as the public sector, the main contracting authority in civil engineering, significantly reduces its contracts from its usual share of 50% of all contracts to only 35% in 2021.
The civil engineering segment continues to stabilise in 2023, but from a very low base. However, there were still challenges in 2023 due to the rapid increase in construction material and energy prices, which the government was very slow to compensate for in 2020-2022. Inadequate project preparation for new transport infrastructure projects also causes problems.
Prices of construction materials
In 2023, the prices of construction materials in Slovakia stabilise. However, many prices are at a significantly higher level than before 2020. At the same time, delivery times have been further reduced. Due to the current lower demand, producers of some materials (masonry materials) have had to reduce production.
Number of building permits in residential construction
