Construction Revives Thanks to Mild Winter

The construction industry in the Czech Republic began to see an upward trend in February following four months of decline. A year-on-year increase of 3.6% was reported, marking the fastest growth since May 2022. Engineering construction played a significant role in this resurgence, while land construction saw a year-on-year decrease.

Engineering construction saw an impressive increase of 19.4%, while land construction declined by 1.5%. Radek Matějka from the Czech Statistical Office stated that engineering construction has been the driving force behind this growth, with a low base and favorable weather conditions contributing to the increase. The engineering sector includes transport and energy buildings, which started work in February due to the absence of frost and snow.

However, February also witnessed a land construction decline, evident in housing development. Construction of apartments, particularly in apartment buildings, began with 1861 apartments, which was 47.2% less compared to the previous February.

BHS economist Štěpán Křeček commented that project launches are often delayed due to expensive financing, but the steady decline in interest rates is gradually mitigating this issue.

By the end of February, the construction industry had completed 3331 apartments, representing a 24.3% year-on-year increase across all categories except for family houses.