Serbia Construction Activity Declines in 2025

Overall construction performance

The total value of construction works in Serbia declined by a real 5.4% in 2025 and by 2% at current prices, according to data released by the national statistics office. The figures point to a broad-based slowdown in construction activity over the year.

Diverging trends across construction segments

The decline was primarily driven by a sharp contraction in civil engineering projects. The real value of construction works related to infrastructure fell by 11.5%, reflecting weaker investment in large-scale public and engineering projects. In contrast, construction works related to buildings increased by a real 6.2%, indicating continued demand in residential and commercial development.

Drop in overseas construction activity

Serbian construction contractors also faced a challenging year abroad. The real value of construction works performed outside Serbia decreased by 14% in 2025, highlighting reduced international engagement and tougher conditions in foreign markets.

Combined domestic and international results

Taking into account both domestic and overseas activities, the total real value of construction works carried out by Serbian contractors fell by 5.6% in 2025. Projects executed abroad accounted for just 1.3% of the total value of construction works, underlining the sector’s strong reliance on the domestic market.

Implications for the economy and property market

The 2025 data suggest a structural shift within Serbia’s construction sector, with building construction gaining importance as infrastructure activity weakens. This imbalance may have longer-term implications for economic growth, employment and the outlook for real estate investment.

As experts at International Investment report, Serbia’s construction sector is undergoing a period of adjustment, where future recovery will depend on renewed infrastructure investment and the resilience of demand for residential and commercial buildings.