Impressive growth in Czech housing construction: Second highest number of new flats since 2000

Last year proved successful for the housing construction industry, with 39,398 new dwellings completed. This represents an increase of 13.9 percent compared to the previous year and marks the second-highest number of completed apartments since 2000, coming close to the peak achieved in 2007, according to the Czech Statistical Office (ČSÚ).

The number of completed new flats was the second highest number since 2000, and significantly close to the peak in 2007. “For flats in family houses, it was even the most since the boom in the 1970s; no other year has seen more than 20,000 flats completed,” Silvie Lukavcová, a representative from the ČSÚ's department of construction and housing statistics. The year-on-year increase included flats in both family houses and apartment buildings.

Central Bohemia has the largest share of new flats of any Czech region, with 20 percent. This region primarily saw the construction of apartments within family houses. Prague, on the other hand, remained a significant driver of construction activity, particularly in apartment buildings.

While most regions experienced positive growth in completed apartments, the Vysočina and South Moravia regions faced a marginal decline. The Karlovy Vary region reported the fewest number of completed apartments.

However, alongside the positive developments, the housing construction sector faced challenges in terms of construction timelines and costs. Apartment buildings, in particular, experienced extended construction periods, now averaging 41 months per building. Single-family houses took slightly less time to complete, with an average duration of 40 months.

The time required to build a house may change, as a new law intended to streamline the permitting process was passed this year and will take effect for new residential projects on July 1, 2024.

Construction costs also saw an increase. Year-on-year, the investment costs for constructing an apartment in a family house rose by CZK 400,000, while apartments in buildings experienced an average increase of CZK 140,000.

Despite the challenges, the size of the completed apartments remained relatively consistent compared to the previous year. Noteworthy changes were observed in construction materials, with a majority of new family houses featuring brick supporting structures. Wooden buildings accounted for a smaller proportion, representing 14.1 percent of new construction. Additionally, approximately 70 percent of houses lacked a connection to the gas pipeline system.

Regarding energy performance, there were minor shifts in building ratings. The extremely economical A class maintained its share at 8.9 percent, while the B class experienced a five-percentage-point decline in favor of the C class.