Croatia’s Construction Costs Rise Twice as Fast as EU Average

Croatia’s Construction Costs Rise Twice as Fast as EU Average

CROATIA: Construction costs in Croatia have increased by 64% since 2020, significantly outpacing the 31% rise across the EU and 44% in Germany. Despite remaining relatively affordable, residential construction costs have reached approximately €2,400 (US$2,686) per sq m. Rising labour expenses, dependence on foreign workers, higher commercial margins and lengthy administrative procedures are contributing to the increase. Material costs have also risen, narrowing Croatia’s price advantage over Western Europe. Meanwhile, lengthy building permit procedures and associated financing costs are adding pressure on developers. The trend is gradually eroding Croatia’s traditional construction cost advantage. 

Source: Croatia week