Czech construction industry ranked 17th in the EU in terms of performance
The Czech construction industry was in 17th place among the 25 countries of the European Union in the first half of the year with a year-on-year decline of 0.7 percent, data from Italy and Cyprus are not available. The Czechia fell by four places year-on-year, improving by one place compared to the end of March. CTK calculated this from data from the European statistical office Eurostat.
"The year-on-year changes in construction output in the first half of this year speak more than anything else about the rate of decline that occurred at the beginning of the pandemic. A comparison of the growth or decline in construction output at this time is probably the ability of companies to secure enough materials and manpower. Demand seems to be sufficient in most markets," says Pavel Sobíšek, an analyst at BH Securities.
In EU countries, construction grew by an average of 8.8 percent in the first half of the year. In the first half of the year, construction grew year on year in 16 countries. Most in France (by 24.4 percent), Austria (by 16.6 percent) and Luxembourg (by 15.8 percent). On the contrary, it fell the most in Ireland (by 7.7 percent), Latvia and Slovakia (by 4.7 percent).
"The figures are skewed by the very different performance of the construction industry in the second quarter of last year, when the first phase of the pandemic culminated in Europe. construction performance, but also about the depth of its decline last year," said Trinity Bank analyst Lukáš Kovanda.
According to Trinity Bank analyst Petr Bartona, the Czechia is lagging behind in housing construction. "If we compare the volume of housing construction with the level at the beginning of 2000, then the Czechia is now in the deepest decline with Spain from the whole union. and since then it is constantly under it," added Bartoň. As he further stated, in the future this means an even lower supply of new flats to the market, which will increase the pressures on rising real estate prices.
"In the future, it will be necessary for us to open our country to foreign workers. They should do construction work that the Czechs refuse. At the same time, we must speed up building permits to increase the supply of real estate and thus dampen further price growth In this case, owner-occupied housing will become completely inaccessible even for the middle class, " added Štěpán Křeček, an analyst at BH Securities.