Serbian construction recovery to continue

Serbia’s civil engineering sector is expected to be the main driver of the country’s construction market recovery during 2013.

According to research company Buildecon, overall construction output is forecast to increase around 5% this year and around 7% in 2014, thanks to financial stimulus from Serbia’s government, combined with deregulation measures.

Serbia’s civil engineering sector has been boosted by a government programme of infrastructure development and has encouraged growth since 2009. After a slowdown in 2012, Buildecon said this sector was predicted to perform well during 2013 and 2014, as many large infrastructure projects should be contracted or start realisation this year.

In contrast, the country’s residential construction sector slumped in 2010 and 2011, and no strong changes are forecast for the coming years. Buildecon said further decline was still possible in 2013, but with a possible recovery in 2014.

Meanwhile, Buildecon said the value of works in the non-residential sector reached €620 million last year, against €609 million in 2011, and said stable growth was expected to continue this year and next.