Bosnia Sees Moderate Growth in Building Permits
Bosnia and Herzegovina’s construction sector showed moderate growth in November 2025, supported by infrastructure projects despite weakness in residential development. According to data released by the national statistics office, the total number of building permits issued rose by 4.7% year-on-year to 468.
Infrastructure drives overall growth
The annual increase was largely driven by civil engineering projects. Permits issued for infrastructure works jumped by 22.5% compared to November last year, reaching 158. This points to stronger public-sector activity in areas such as transport, utilities and technical infrastructure.
By contrast, the number of permits issued for buildings declined by 2.5% year-on-year to 310, indicating more cautious investment behaviour in the residential and commercial property segments.
Sharp decline in planned housing units
The slowdown was most visible in housing plans. The number of dwellings envisaged in issued permits fell by 23.8% year-on-year to 763 units in November. The decline suggests developers are delaying or scaling back new housing projects amid higher financing costs, demand uncertainty and broader economic risks.
This divergence highlights a shift in construction activity away from private housing toward infrastructure and publicly backed projects.
Broader market context
Despite the mixed November figures, the broader trend remains relatively positive. In 2024, the number of building permits issued in Bosnia and Herzegovina rose by 14%, creating a high comparison base for 2025.
Analysts note that the current pattern points to a rebalancing within the construction sector rather than a downturn, with infrastructure investment temporarily offsetting weaker residential development.
As reported by International Investment experts, Bosnia and Herzegovina’s construction market is entering a reallocation phase rather than a contraction. Continued infrastructure investment is cushioning the sector, but a sustainable recovery in residential construction will depend on improved financing conditions and investor confidence in 2026.