Construction of 19,712 new apartments started in the Czech Republic by the end of May, according to the analyst, a fifth more. The construction of 5,309 new apartments began in May, which is 24.1 percent more year-on-year and the most since 2006. This follows from data published today by the Czech Statistical Office (ČSÚ).
According to Petra Cuřínová, head of the Department of Construction and Housing Construction Statistics of the ČSÚ, the increase in the number of newly started apartments is mainly connected with the construction of apartment buildings. The number of completed apartments in May increased by 3.1 percent year-on-year to 2,882 apartments. In total, over 15,000 new apartments were completed in the Czech Republic since the beginning of the year.
“Almost 20,000 apartments have been built in the Czech Republic since the beginning of the year, which was 20 percent more than in the same period last year. This year, Prague, central Bohemia, as well as the South Moravian and Olomouc regions are experiencing an expansion in housing construction,” said Petr Dufek, Chief Economist of Creditas Bank.
He added that a record number of new apartments, more than 48,000, are currently being built. According to him, it can be expected that there will most likely be enough new apartments on the market this year. Due to rising interest rates and living costs, own housing will be less affordable for Czechs, he added. “It’s an opportunity for investors to focus more on the rental housing segment, which is still not that developed in the Czech Republic,” he added.
Building authorities issued 8,035 building permits in May, down 8.4 percent year-on-year. According to the estimate of the ČSÚ, construction permits worth 49.9 billion crowns were received.
Construction production in the Czech Republic has been growing for the 13th month in a row, i.e. continuously since last May. However, performance has been weakening in recent months. While in February this year the construction industry grew by almost 17 percent year-on-year, in March it was by 8.8 percent, in April by four percent and in May by 3.3 percent.
Source: ČSÚ and CTK
