“As a result of rising energy prices, the volume of renovations is increasing for both non-residential and residential buildings.”
The Czech construction industry is suffering from the decline of its largest sector – residential buildings. Their production has fallen substantially as a result of high interest rates freezing the mortgage market. As high interest rates are a response to one of the highest levels of inflation in the European Union, it is expected that the mortgage market, and thus the real estate market, will recover once inflation falls. Real estate developers, who have dampened the construction of flats in the last two years, are also waiting for this turn. This recovery should already occur during 2024.
On the other hand, the non-residential building sector is starting to grow again after years of a long-lasting downturn. As a result of rising energy prices, the volume of renovations is increasing for both non-residential and residential buildings. The trend of recent months is the installation of new energy-saving heating systems, solar panels and building insulation.
The construction performance in civil engineering remains high. The volume of investment going into transport infrastructure is stable across governments. Not only the state but also cities are investing in transport infrastructure. The biggest project is the construction of a new metro line in Prague. However, a very lengthy bureaucratic process is a problem with the implementation of not only transport constructions.
