Declining building production: green light to the first projects
Declining building production: green light to the first projects
Even though performance has slowed down in recent months, construction output in the Czech Republic has been on the rise for the 13th consecutive month. According to experts, the construction decline, which led to a 17 per cent year-on-year growth in February to slow down to 3.3 per cent in May, is mainly due to labour shortages and rising prices for materials and energy. These will continue to negatively affect the design and construction of small and large buildings. Indeed in May, the demand for building permits dropped by 8.4 per cent, but at the same time, the indicative value of these buildings, mainly apartments blocks, increased by 33.1 per cent compared to the same period last year, to 49.9 billion Czech crowns.
According to Finance Minister Zbynek Stanjura, the aim of making the Czech Republic’s real estate market, which is currently characterised by prohibitive prices, more affordable has led the Czech government to include in its plans the privatisation of a large amount of state land for housing projects. A list of usable land has already been established, and many of these are located in the capital area of Prague and Brno.
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