Slovenia’s Construction Sector

Construction Sector Performance

In 2022, the construction industry (NACE Rev. 2 - F) generated €3.7 billion in value added—an increase of €859 million compared to 2021. Real growth in the sector reached 10.4%, while nominal growth stood at 30.4%. Construction’s share of Slovenia’s total value added rose to 7.1%, outperforming the EU-27 average of 5.5%.

Investment in construction reached €6 billion in 2022, marking a 10.6% real growth year-on-year. Residential building investments increased by €345 million, while other construction projects grew by more than €1 billion. Public infrastructure development is set to accelerate, fueled by €2.1 billion from the EU’s Recovery and Resilience Plan and Cohesion Funds for 2021–2027.

Key Trends and Challenges

• Construction activity grew by 22% in 2022 compared to 2021, supported by strong demand and election-year spending.

• Real estate prices increased sharply: residential property prices were up 14.7% year-on-year.

• Labor shortages and rising costs remain challenges, with 46% of the construction workforce now foreign nationals.

• Civil engineering projects—including the 2nd Koper-Divača railway track, the 3rd development axis, and modernization of national roads—are driving sector growth.

By 2024, total investment in construction is expected to reach €4 billion, reinforcing Slovenia’s long-term infrastructure ambitions. Despite cost pressures, the sector’s momentum positions Slovenia as an attractive environment for both domestic and foreign investors.