The value of construction investments in the Hradec Králové Region that were permitted by the authorities fell by 27 percent year-on-year to CZK 27.1 billion last year from CZK 37 billion in 2022. Despite the decline, this was the second highest value of permitted investments in the region’s modern history. In 2021, the value of permitted investments stood at CZK 19 billion. This is based on data from the Hradec Králové branch of the Czech Statistical Office. In the whole country, the value of permitted constructions rose by 17 percent year-on-year to CZK 602 billion last year.
The indicative value of newly permitted constructions last year was mainly accounted for by non-residential constructions. However, their value fell by 41 per cent to CZK 11.5 billion from CZK 19.4 billion. It should be noted that last year, the most significant permitted non-residential construction was the investment of Charles University in the construction of two buildings for the Faculty of Medicine and Pharmacy for CZK 6.1 billion. Construction of the campus began last August and is expected to be completed in 2026.
The value of permitted residential buildings fell by seven per cent last year to CZK 7.4 billion. That corresponds with data on residential construction, which also fell by seven per cent year-on-year in the region last year. Investors started construction of 1,549 flats in the region last year, compared to 1,665 the year before. The biggest drop was in single-family homes, down 22 percent to 750 starts.
The rest of the value of permitted constructions, amounting to CZK 8.3 billion, with a year-on-year decrease of 15 percent, was attributable to civil engineering constructions.
The number of building permits issued in the region fell by eight per cent last year to 4,048 permitted structures. The average value per permitted building fell to CZK 6.7 million from CZK 8.4 million the previous year.
Among the major investors in the region are the Hradec Králové Region and cities. The region plans to spend a record CZK 2 billion on road and bridge reconstruction this year. The Czech Roads and Motorways Directorate plans to invest billions of crowns in the construction of further sections of the D35 and D11 motorways. The five district towns in the region plan to invest a total of around CZK 1.11 billion this year.
Source: CTK
