Constructions approved in the last half of last year could bring almost CZK 916 billion to the Czech economy. Housing construction accounts for a third of this benefit. A new analysis by Central Group and KPMG showed this. The construction industry has a huge multiplier effect, each crown invested in it returns to the economy three times.
In February, 682 new flats in apartment buildings were approved in Prague. Together with January, this is a total of 852 new flats for Prague. For the whole year, the metropolis would receive about 5,000 flats, which is about half the required number.
As the so-called construction barometer, which is part of a large analysis by Central Group and KPMG, shows, new housing construction has a huge economic impact. The flats allowed in the second half of 2021 could bring 303 billion to the state. And their importance is growing. Compared to the previous six months, this is a 30% larger amount of money.
Accelerating the permitting of new housing construction should therefore be in the best interests of the state. Not only is it a solution to the housing crisis, but it will also saturate the state budget, which is now struggling with the consequences of the pandemic and the war in Ukraine.
