Building Permits Granted

Commentary

Between the beginning of January and the end of July 2007 the planning and building control authorities granted a total of 64 438*) building permits on the territory of the Czech Republic, which is 7 077 permits down on the corresponding period of 2006.
There were 38 809 building permits granted for buildings in total (i.e. 1 607 year-on-year) of which residential buildings accounted for 27 404 permits (+ 241) and non-residential buildings for 11 405 ( 1 848).
The number of building permits granted for constructions for environmental protections was 9 553 which translates into a decrease of 3 586.
The number of building permits granted for other constructions amounted to 16 076, which is by 1 884 less than in the corresponding period of 2006.

Of the total 64 438 building permits, 34 8222 was granted for new construction (54.0 %) and 29 616 for renewals and enhancements (46.0 %).

Territorially, rather high investment activities are expected in the Středočeský Region (18.3 %), Jihomoravský Region (12.1 %), Moravskoslezský Region (9.1 %) and the capital city of Prague (9.0 %), which is in contrast to the lowest construction activities expected in the Karlovarský Region (2.8 %), the Liberecký Region (3.4 %) and Pardubický Region (4.4 %).

There were 27 404 building permits granted for residential buildings: 11 053 of them for new construction (40.3 %) and 16 351 for renewals and enhancements (59.7 %). Most of them were granted in the Středočeský Region (17.9 %), the Jihomoravský Region (12.5 %) and the Moravskoslezský Region (10.0 %). 3 789 building permits issued on the territory of the capital city of Prague make up 13.8 %, of which 2.8 % account for new construction.

The buildings, which were given a go-ahead for the start of construction from January till July 2007, are supposed to provide 39 719 dwellings throughout the Czech Republic. New construction should be provide 19 115 dwellings (48.1 %; 18 908 and 207 dwellings in residential and non-residential buildings, respectively). Renewals and enhancements resulting in dwellings should be provide 3 606 dwellings (9.1 %; 2 827 in residential buildings and 779 in non-residential buildings). Total 22 721 new dwellings. The other renewals and enhancements (i.e. those that do not produce new dwellings) should be result in 16 998 reconstructed dwellings (42.8 %).

Between the beginning of January and the end of July 2007 the planning and building control authorities permitted the construction of buildings with floor space 5 064.1 thousand m2 (+ 9.2 %), of which 2 667.3 thousand m2 was in residential buildings (+ 7.6 %) and 2 396.8 thousand m2 in non-residential buildings (+ 11.0 %). A floor space of 4 767.4 thousand m2 was obtained in new constructions and 296.7 thousand m2 by renewals and enhancements.

The approximate value of the constructions, for the commencement of which the planning and building control authorities granted building permits by the end of July, amounts to CZK 197965 million at current prices, which translates into a decrease of CZK 241 million on the corresponding period of 2006.
A total of CZK 135 503 million (an increase of CZK 7 580 million year-on-year, i.e. + 5.9 %) should be spent on construction of buildings, of which CZK 61134 million on residential buildings (by CZK 3 431 million more) and CZK 74 369 million on non-residential ones (+ CZK 4 149 million).
A total of CZK 13 332 million should be invested in constructions for environmental protection - i.e. by CZK 1 104 million less than in the corresponding period of 2006.
The approximate value for the other constructions amounts to CZK 49 130 million - a decrease of CZK 6 717 million on the corresponding period of 2006.

*) New Act No. 183/2006 Sb., on territorial planning and the building code (the Building Act), is in force from 1 January 2007. This Act, especially in Sections 103 and 104, regulates newly the problem of “granting building permits”. The new Act may have an impact on absolute values in the time series covering building permits and renewals and enhancements, particularly numbers of building permits and their approximate value for non-residential buildings, environmental and other constructions.