Construction companies in the Czech Republic began construction of 8,282 new flats in apartment buildings by the end of July this year, up 37.2 percent year-on-year. The growth rate increased from 26.8 percent at the end of June. Most of them were in Prague, where by the end of July their number had increased by 32 percent to 3108. The number of started construction of family houses in the Czech Republic increased by 0.2 percent year on year.
By the end of July, Prague accounted for 37.5 percent of newly started apartment buildings in the Czech Republic. This was followed by the Central Bohemian Region with a share of 12.9 percent, the South Bohemian Region (12.6 percent) and the South Moravian Region (11.2 percent). On the contrary, in the Karlovy Vary region it was 0.3 percent with 28 flats.
The number of newly built family houses in the Czech Republic increased by 0.2 percent year on year to 11,942 by the end of July. The Central Bohemian Region accounted for the largest share with a share of 22.8 percent, followed by the South Moravian Region (13.3 percent), the Moravian-Silesian Region (10.4 percent) and the Pilsen Region with a share of 7.4 percent. The lowest number was in Prague and the Karlovy Vary region, 2.4 percent.
Together with other categories, such as superstructures, built-ins and boarding houses, individuals and construction companies began building 23,887 dwellings in the first seven months, up 11.8 percent year-on-year. The Central Bohemian Region had the largest share (17.3 percent). This was followed by Prague (15.6 percent), South Moravia (13.5 percent) and the South Bohemian Region (8.2 percent). The least of them were in the Karlovy Vary region with a 2% share. This region is the smallest in terms of population.
“In housing construction, we can perhaps slowly talk about a positive trend. A significant increase is finally recorded in Prague and Central Bohemia, where the situation on the real estate market is the most tense. the current extreme rise in housing prices,” says ČSOB analyst Petr Dufek.
According to data from developers Trigema, Skanska Reality and Central Group, sales prices of new apartments in Prague have risen by 113 percent over the last six years to CZK 118,480 per square meter.
The Czech Republic has been facing a housing crisis in recent years. According to the World Bank, the Czechia ranks 156th out of 190 countries in the process of processing building permits. The situation is to be improved by a new building law, which has many critics. The norm was approved by the Chamber of Deputies in July, which overruled the Senate veto.
Source: Czech Statistical Office (CSO) and CTK
