Building Permits Granted

Commentary

Between the beginning of January and the end of November 2007 the planning and building control authorities granted a total of 108 531 *) building permits on the territory of the Czech Republic, which is 15 419 permits down on the corresponding period of 2006.
There were 63 228 building permits granted for buildings in total (i.e. - 5 258 year-on-year) of which residential buildings accounted for 44 217 permits (- 1 747) and non-residential buildings for 19 011 (- 3 511).
The number of building permits granted for constructions for environmental protections was 17 527 which translates into a decrease of 5 961.
The number of building permits granted for other constructions amounted to 27 776, which is by 4 200 less than in the corresponding period of 2006.
Of the total 108 531 building permits, 60 804 was granted for new construction (56.0 %) and 47 727 for renewals and enhancements (44.0 %).

Territorially, rather high investment activities are expected in the Středočeský Region (18.0 %), Jihomoravský Region (12.9 %), Moravskoslezský Region (9.2 %) and the capital city of Prague (8.5 %), which is in contrast to the lowest construction activities expected in the Karlovarský Region (2.7 %), the Liberecký Region (3.4 %) and Pardubický Region (4.5 %).

There were 44 217 building permits granted for residential buildings: 18 209 of them for new construction (41.2 %) and 26 008 for renewals and enhancements (58.8 %). Most of them were granted in the Středočeský Region (18.1 %), the Jihomoravský Region (12.5 %) and the Moravskoslezský Region (10.2 %). 5 879 building permits issued on the territory of the capital city of Prague make up 13.3 %, of which 3.0 % account for new construction.

The buildings, which were given a go-ahead for the start of construction from January till November 2007, are supposed to provide 67 114 dwellings throughout the Czech Republic. New construction should be provide 34 006 dwellings (50.7 %; 33 352 and 654 dwellings in residential and non-residential buildings, respectively). Renewals and enhancements resulting in dwellings should be provide 5 796 dwellings (8.6 %; 4 521 in residential buildings and 1 275 in non-residential buildings). Total 39 802 new dwellings. The other renewals and enhancements (i.e. those that do not produce new dwellings) should be result in 27 312 reconstructed dwellings (40.7 %).

Between the beginning of January and the end of November 2007 the planning and building control authorities permitted the construction of buildings with floor space 8 261.6 thousand m2 (+ 1.4 %), of which 4 508.4 thousand m2 was in residential buildings (+ 4.4 %) and 3 753.2 thousand m2 in non-residential buildings (- 2.0 %). A floor space of 7 789.3 thousand m2 was obtained in new constructions and 472.3 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 November, amounts to CZK 321 316 million at current prices, which translates into a decrease of CZK 4 948 million on the corresponding period of 2006.
A total of CZK 218 419 million (an increase of CZK 4 630 million year-on-year, i.e. + 2.2 %) should be spent on construction of buildings, of which CZK 105 593 million on residential buildings (by CZK 4 640 million more) and CZK 112 826 million on non-residential ones (- CZK 10 million).
A total of CZK 23 982 million should be invested in constructions for environmental protection - i.e. by CZK 7 million more than in the corresponding period of 2006.
The approximate value for the other constructions amounts to CZK 78 915 million - a decrease of CZK 9 585 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.