Building Permits Granted

Commentary

Between the beginning of January and the end of December 2007 the planning and building control authorities granted a total of 117 384 *) building permits on the territory of the Czech Republic, which is 18 007 permits down on the corresponding period of 2006.
There were 67 876 building permits granted for buildings in total (i.e. - 6 404 year-on-year) of which residential buildings accounted for 47 298 permits ( - 2 479) and non-residential buildings for 20 578 ( - 3 925).
The number of building permits granted for constructions for environmental protections was 19 079 which translates into a decrease of 6 700.
The number of building permits granted for other constructions amounted to 30 429, which is by 4 903 less than in the corresponding period of 2006.

Of the total 117 384 building permits, 66 020 was granted for new construction (56.2 %) and 51 364 for renewals and enhancements (43,8 %).

Territorially, rather high investment activities are expected in the Středočeský Region (18.2 %), Jihomoravský Region (12.8 %), Moravskoslezský Region (9.2 %) and the capital city of Prague (8.6 %), which is in contrast to the lowest construction activities expected in the Karlovarský Region (2.7 %), the Liberecký Region (3.3 %) and Pardubický Region (4.5 %).

There were 47 298 building permits granted for residential buildings: 19 414 of them for new construction (41.0 %) and 27 884 for renewals and enhancements (59.0 %). Most of them were granted in the Středočeský Region (18.0 %), the Jihomoravský Region (12.4 %) and the Moravskoslezský Region (10.3 %). 6 432 building permits issued on the territory of the capital city of Prague make up 13.6 %, of which 3.1 % account for new construction.

The buildings, which were given a go-ahead for the start of construction from January till December 2007, are supposed to provide 73 431 dwellings throughout the Czech Republic. New construction should be provide 37 471 dwellings (51.0 %; 36 788 and 683 dwellings in residential and non-residential buildings, respectively). Renewals and enhancements resulting in dwellings should be provide 6 325 dwellings (9.0 %; 4 842 in residential buildings and 1 483 in non-residential buildings). Total 43 796 new dwellings. The other renewals and enhancements (i.e. those that do not produce new dwellings) should be result in 29 635 reconstructed dwellings (40.4 %).

Between the beginning of January and the end of December 2007 the planning and building control authorities permitted the construction of buildings with floor space 9 073.6 thousand m2 ( - 1.2 %), of which 4 917.5 thousand m2 was in residential buildings (+ 3.2 %) and 4 156.1 thousand m2 in non-residential buildings ( - 5.9 %). A floor space of 8 561.4 thousand m2 was obtained in new constructions and 512.2 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 December, amounts to CZK 357 708 million at current prices, which translates into a decrease of CZK 3 237 million on the corresponding period of 2006.
A total of CZK 239 834 million (an increase of CZK 947 million year-on-year, i.e. + 0.4 %) should be spent on construction of buildings, of which CZK 116 032 million on residential buildings (by CZK 4 588 million more) and CZK 123 802 million on non-residential ones ( - CZK 3 641 million).
A total of CZK 26 139 million should be invested in constructions for environmental protection - i.e. by CZK 988 million less than in the corresponding period of 2006.
The approximate value for the other constructions amounts to CZK 91 735 million - a decrease of CZK 3 196 million on the corresponding period of 2006.

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*) 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.