The Czech construction industry continues its robust recovery, with a remarkable 14% year-on-year growth in June, according to the Czech Statistical Office. This upward trend was further evidenced by a 2.6% month-on-month increase. However, this impressive growth isn’t being driven by residential construction, as new housing starts remain concerningly low.
“Construction production continued its double-digit growth in June. Engineering works were the driving force, but building construction didn’t lag behind either,” stated Radek Matějka, director of the Department of Statistics for Agriculture and Forestry, Industry, Construction and Energy at the Czech Statistical Office.
The data reveals a stark contrast between sectors. Ground construction, which includes residential and non-residential buildings, saw a 10.3% increase compared to June 2024. Meanwhile, engineering construction—encompassing roads and telecommunication and energy networks—surged by an impressive 20.3% year-on-year.
Despite these positive indicators for the broader economy, housing market statistics paint a more concerning picture. June saw construction begin on only 2,637 apartments, representing a 2.5% decrease year-on-year. This continues a troubling trend from recent months, with the first half of the year recording just 16,295 new housing starts—the lowest figure since 2017.
The sluggish pace of residential construction threatens to further drive up real estate prices. Demand for apartments remains exceptionally high, particularly in major cities, and the current rate of new construction cannot meet this demand. Though the number of completed apartments rose by 40% to 3,775 in June, many of these properties had already been sold in advance due to the intense market demand.