Last year were built 34 000 new flats in Czech Republic
According to the annual report of the Czech Statistical Office, 2 000 fewer apartments were built in the year 2020 than in 2019. However, it should be noted that this is more than what was completed annually between 2015 and 2018.
In the Czech Republic today, we can observe a shortage of apartments on the one hand and a high demand for them on the other, which leads to an increase in real estate prices. Moreover, the current volume of construction does not meet the housing needs of the population. Economists believe that, despite rising mortgage rates, house prices will continue to rise, but at a more moderate pace.
As an example of how the volume of construction compares, in 2008, more than 45 000 dwellings were built per year. In the year 2020, 34 412 were built and in 2015 only 26 378. BHS analyst Štěpán Křeček believes that at least 40 000 new flats need to be built annually to halt the rapid growth of property prices in the Czech Republic. According to him, this indicator cannot be achieved without active state support. He also thinks that the rise in mortgage prices will not fundamentally affect the behaviour of investors, as they often buy property without credit. According to the opinion of eEkonom ČSOB Petr Dufek, it is assumed that the reason for the low growth and obstacles to construction is bureaucracy, shortage of builders and building materials due to their rising price. He notes that the number of building permits issued suggests that the situation will not change significantly in the near future.
The new building law may improve the situation on the real estate market and contribute to the growth of the construction rate, but experts remind that it is too early to draw conclusions, because a lot depends on the officials who decide on the issuance of building permits. The final outcome will depend very much on their well-coordinated work. In conclusion, if you are thinking of buying a property in the Czech Republic, we will be happy to advise you and choose the best solution that meets your requirements.
| 2015 | 2017 | 2019 | 2020 | |
| Number of construction starts | 26 378 | 31 521 | 38 677 | 35 254 |
| Number of completed flats | 25 095 | 28 569 | 36 409 | 34 412 |
