Czechia construction output stagnates

Czechia construction output stagnates
Czechia's construction industry is experiencing stagnation.
By bne IntelliNews November 8, 2017

Czechia's construction output has stagnated. In September, adjusted for working day effects, it edged up by 0.2% y/y, and with no adjustment it decreased by 1.1%.

Also in the month, the building permits office issued 3.8% more permits year on year while the approximate value of these permits increased by 32.2%.

The slowdown is more a consequence of a lack of available plots than a downturn in the sector. The Czechia real estate market has gone through a boom but developers say the dearth of available plots in Prague, in particular, has caused them to look for more profitable investments in neighbouring markets.

Real estate prices have soared and the market is starting to look somewhat saturated after at least a year of strong growth.

For example, Czech-based real estate developer JRD said it expected sales to rise to CZK500mn (€19.4mn) this year and to top CZK1bn (€38mn) in 2018.