Negative trend for construction sector continues
16 July 2008
The trend of granting construction licences in Croatia is on the negative side also in the first half of 2008 according to the data released by the Croatian statistics office.
A total 1,132 construction permits were granted in the first six months this year, that is 21.8% less compared to the same period of 2007, registering the negative record of the past six years. In the same period the value of the construction works fell by 722.2 million kunas (some EUR 100.3 million), that is by 6.3%.
The drop of the construction works is expected to influence the entire construction sector which has a 10% share of Croatian GDP. The negative trend was attributed to the rise of the interest rates on mortgage loans, the drop of sales of new apartments and to the recent launch of a new law on construction and environment planning, which entails that before the concession of construction permits road network must built to the building under construction.