Entrepreneurs believe in the stability of building materials prices until the end of December. Despite the illegibility of the market, some expect further increases in the price of materials after the New Year, according to the Association of Entrepreneurs in Construction and construction suppliers.
The president of the Association of Entrepreneurs in the Construction Industry, Jiří Nouza, sees the prediction of further development as very difficult. “The construction industry, in the broadest sense of the word, is affected by a number of factors – starting with the prices of input materials and energy and ending with declining demand,” said Nouza. “Information from the market shows that there has been some calming in the growth of input materials prices. It is important how the situation will develop and what are the reasons for stagnation,” he added.
The owner of Stavospol stavebniny, Pavel Žák, agrees with the continuing stability of prices in December, but expects prices to rise after the New Year. It therefore encourages potential applicants not to delay the purchase of building materials. “Everything is more expensive than at the beginning of this year, but current building material prices are significantly cheaper than the amounts builders spend if they buy next spring, when prices rise by up to 20 percent. Manufacturers’ traditional winter discounts are unlikely.” stated Žák.
However, builders are facing not only an increase in price, but also a lack of material. According to Stavospol, a number of commodities ordered this year will not be available until next spring. “Some people have postponed constructions or renovations because they simply do not fit into the budget,” said Josef Hulín from Zednikolomouc.cz.
According to Stavospol, the producers of concrete goods and all cement-related products report the highest price increases. “Cement will be significantly more expensive next year due to rising energy prices, transport, emission allowances and lack of slag. Allowance prices may affect the price of cement during the next year. High price increases are also announced for masonry materials, thermal insulation, plasterboard, aggregates,” added Žák.
According to data from the Czech Statistical Office, construction output rose by 3.7 percent year on year in real terms in October. Production in building construction accelerated by 7.1 percent compared to last October. According to BH Securities chief economist Štěpán Křeček, the number of cases where people do not have enough money to complete family houses under construction due to rising prices is also growing, and rising prices in construction are forcing families to sell unfinished houses.
However, according to Hypoteční banka analysts, the increase in prices is not only due to higher prices of construction work and materials. The share of investment purchases, which is driven by inflation concerns, is also key to understanding price growth. In November, it accelerated year-on-year growth to six percent from 5.8 percent in October and was 1.1 percent. higher than estimated by the CNB. The reason is a more significant increase in core inflation and a rise in rents within it.
Source: CTK
