Jump in Czech Q1 residential starts not yet a trend

Jump in Czech Q1 residential starts not yet a trend

Published at: 2019-05-29 06:09 | Author: CIJEurope.com
Residential construction starts in the first quarter of 2019 hit their highest level in ten years. But market observers say the fact that work began on 10,000 units between January and March across the country is not necessarily a trend, according to idnes.cz. "I don't think this is a sign that construction has been unblocked," said Pavel Kliment of KPMG. "Objectively speaking, the conditions aren't there for it. Quarterly results tend to be very sensitive to fluctuation, which can be the result of a large project receiving planning approval."

But the numbers do displaying improvement in Prague, with nearly 2,000 flats begun in the last two quarters. "After the dramatic fall in new residential construction in 2016 when construction offices issued permits for just 2,758 units, we can observe a positive trend," said Marek Vacha, spokesman for the city's Institute of Planning and Development (IPR). He said similar numbers are needed in the coming months, in view of Prague's growing population. IPR has estimated that 1.4 million people will live in the Czech capital by 2030. Finep's spokesman David Jirušek, however, was blunt about his company's view. "Nothing can be read into the numbers because thanks to the force of bureaucracy, administration and bad legislation, the whole process of preparing projects takes a horrendous 10 years."

Similar Stories:

Metropolitan Residence to invest €100m in Crown Towers
Metropolitan Residence is planning to invest €100m to develop Crown Towers in northern B  »
Low savings rates hitting Czech mortgage volumes
Czech banks were expecting to hand out CZK 200bn in mortgage loans, but it's now clea  »
Hyper-luxury residential planned in Prague 6
A new residential project in Prague 6 appears to be going beyond the usual boundaries of w  »
Demand for small Prague flats drives prices to CZK 84,896 per sqm
The growth in residential prices has slowed slightly, but it's still tough for Prague  »
Where do you see your company going over the next two years? Since I became GM of the co   »
Construction has begun on Bispevika, a brownfield project along Oslo’s waterfront that   »
PSN has sold 350,000 sqm of land to the dominant Czech residential developer Central Group   »
Investors from China, Russia and other countries are leading a growing influx of foreign f   »