Construction output dropped 7.4 percent y-o-y in September, according to data compiled by the Czech statistical office (CSU). Residential development followed a similar trend, with the number of flats that recently broke ground down by 70 percent y-o-y, dropping from 3,033 in 2015 to 862 due to blocked planning. Developers sold 4,800 new units in the same period, which is five times the number of flats under construction, according to the latest report by Central Group. The lack of supply is pushing prices up. With residential prices jumping 20 percent y-o-y in Prague. The residential slowdown in Prague has bitten into the city’s market share. While in the first three quarters of 2015, Prague accounted for 60 percent of all new residential constructions, that number dropped to a mere 23 percent in 2016. The capital is closely followed by Pilsen, South Moravia and Central Bohemia.
