Construction companies in the Czech Republic began construction of 17,350 flats in apartment buildings last year, 84.1 percent more year-on-year. Most of them were in Prague, where their number increased by 155.2 percent to 8283. The number of started construction of family houses in the Czech Republic increased by 9.4 percent year on year. This follows from current data from the Czech Statistical Office (ČSÚ).
“In 2011-2020, only 2,900 flats a year were allowed on average. This is a great result. Nevertheless, there is still no reason to rejoice. According to the IPR and ČVUT study, the metropolis needs at least ten thousand flats a year,” Central Group Director Michaela Tomášková.
According to Natland economist Petr Bartona, it was possible to observe a significant transition from the construction of family houses to apartment buildings throughout the past year. “These are cheaper in terms of the apartment built, so it can be said that the market solves the problem of very expensive apartments in the most economical way. The trend is also accelerating by five times, however much it was compared to last year’s lockdown December,” said Barton.
By the end of December, Prague accounted for 47.7 percent of all newly started apartment buildings. This was followed by the Central Bohemian Region with a share of 14 percent, the South Moravian Region with a share of 10.7 percent and the South Bohemian Region with a share of 6.5 percent. On the other hand, only 89 dwellings were started in the Ústí Region, which was a share of 0.5 percent of the total number.
By the end of December, the number of newly built family houses had increased by 9.4 percent year on year from 19,446 to 21,271. The Central Bohemian Region accounted for the largest share with a share of 22.7 percent. This is followed by the South Moravian Region with 12.7 percent, the Moravian-Silesian Region with 10.1 percent and the Pilsen Region with a share of 7.3 percent. The lowest number was in Prague (3 percent) and in the Karlovy Vary region (2.3 percent).
Together with other categories, such as superstructures, built-ins and boarding houses, individuals and construction companies began to build 45,244 flats last year, which was 28.3 percent more year-on-year. Prague had the largest share with 21.4 percent. This was followed by the Central Bohemian Region with 17.8 percent, the South Moravian Region with 12.6 percent and the South Bohemian Region with a share of 6.4 percent. There were the fewest of them in Karlovy Vary (2.1 percent), this region is the smallest in terms of population.
Barton also reminded that lockdowns affected housing construction (so-called building construction) more than engineering construction (road construction or telecommunications and energy networks). Compared to the pre-pre-December December 2019, according to Barton, the performance of civil engineering is at the level of 5.2 percent higher than before the covid. Housing construction achieves an output of only 93.5 percent compared to the performance of building construction before the pandemic. “Civil engineering tends to be awarded in the public sector, whose demand is independent of the economic situation, and thus continued to grow undisturbed,” Bartoň added.
Source: ČSÚ and CTK
