Czech Statistical Office Registered an Increase in the Volume of Building Construction throughout the Country
According to official data from the Czech Statistical Office, the volume of building construction increased by 7.9% at the end of the second quarter of 2021. What could have contributed to the fast-growing and dynamic trend of construction volume across the Czech Republic?
This positive indicator is mainly linked to the growth in the number of issued permits for real estate construction and the start of the modernisation of the Czech bureaucratic system in the real estate sector. Despite the fact that 8 232 permits were issued, which is 4.9% more than last year, the cost of the process of issuing the documents needed for construction has almost doubled. Average wages for construction workers also increased by 6.7%, according to quarterly reports from the statistics office.
It is also impossible to ignore the increase in the number of dwellings put into operation. At the end of this quarter, 4 246 apartments were put into operation, which is 54.7% more than in the same period last year. A number of new residential complexes and projects were put into operation in major cities of the Czech Republic, such as Prague and Liberec, as well as in the entire South Moravian Region.
As for the second quarter of this year, the Czech Authority issued 2 4971 permits for the construction of real estate. When comparing these figures with the same quarter last year, it can be concluded that the dynamics of issuing permits has a steadily increasing trend and amounts to 11,1%. The number of housing units put into operation across the Czech Republic amounted to 11 895, which is a quarter more than in the second quarter of 2020.
The positive dynamics of the construction industry throughout the Czech Republic will surely bring only joy to everyone. However, further improvements to the permitting system and a gradual reduction of bureaucracy are needed to fully resolve the problem of oversupply.
