The Czech construction industry experienced a slowdown in growth during the latter half of the summer, according to recent data from the Czech Statistical Office (ČSÚ). After a 2% increase in July, August saw a modest year-on-year growth of just 0.4% in construction output.
Civil engineering emerged as the sector’s bright spot, with a 5.3% increase driven by the development of roads, telecommunications, and energy networks. However, this positive trend was offset by a 2.3% decline in building construction.
Month-on-month figures paint an even starker picture, with overall construction output falling by 1.6% in August compared to July. This decline suggests that the industry may be facing headwinds as it moves into the autumn months.
Regional disparities are becoming increasingly apparent in the construction landscape. Prague, the capital, is experiencing a renaissance in building activity, with nearly 5,000 new apartments breaking ground this year – a 50% increase compared to the same period last year. However, this surge comes with a caveat: Prague remains the most unsaturated market with the highest prices in the Czech Republic, making housing affordability a pressing issue.
Looking ahead, experts predict that other economically strong regions may follow Prague’s lead in construction growth. However, the extent of this expansion remains uncertain, with potential hurdles in the building permit process looming large.
The value of buildings granted construction permits in August saw a slight year-on-year decrease of 1.2%, totaling 49.5 billion Czech crowns. New housing starts also declined, with 2,753 apartments beginning construction – an 11.3% drop compared to August of the previous year. Completed apartments saw an even steeper decline, falling by about 20% year-on-year to 2,238 units in August 2024.
As the Czech construction industry navigates these mixed signals, stakeholders will be closely monitoring how regulatory challenges, regional disparities, and economic factors shape the sector’s trajectory in the coming months.