Building Permits Granted

Commentary

Between the beginning of January and the end of September 2007 the planning and building control authorities granted a total of 87 188*) building permits on the territory of the Czech Republic, which is 11 248 permits down on the corresponding period of 2006.
There were 51 572 building permits granted for buildings in total (i.e. 3 855 year-on-year) of which residential buildings accounted for 36 383 permits ( 932) and non-residential buildings for 15 189 ( 2 923).
The number of building permits granted for constructions for environmental protections was 13 661 which translates into a decrease of 4 520.
The number of building permits granted for other constructions amounted to 21 955, which is by 2 873 less than in the corresponding period of 2006.

Of the total 87 188 building permits, 48 283 was granted for new construction (55.4 %) and 38 905 for renewals and enhancements (44.6 %).

Territorially, rather high investment activities are expected in the Středočeský Region (18.3 %), Jihomoravský Region (12.8 %), 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 (2.8 %), the Liberecký Region (3.4 %) and Pardubický Region (4.5 %).

There were 36 383 building permits granted for residential buildings: 14 904 of them for new construction (41.0 %) and 21 479 for renewals and enhancements (59.0 %). Most of them were granted in the Středočeský Region (18.1 %), the Jihomoravský Region (12.4 %) and the Moravskoslezský Region (10.3 %). 4 776 building permits issued on the territory of the capital city of Prague make up 13.1 %, of which 3.0 % account for new construction.

The buildings, which were given a go-ahead for the start of construction from January till September 2007, are supposed to provide 54 812 dwellings throughout the Czech Republic. New construction should be provide 27 157 dwellings (49.5 %; 26 886 and 271 dwellings in residential and non-residential buildings, respectively). Renewals and enhancements resulting in dwellings should be provide 4 661 dwellings (8.5 %; 3 689 in residential buildings and 972 in non-residential buildings). Total 31 818 new dwellings. The other renewals and enhancements (i.e. those that do not produce new dwellings) should be result in 22 994 reconstructed dwellings (42.0 %).

Between the beginning of January and the end of September 2007 the planning and building control authorities permitted the construction of buildings with floor space 6 618.7 thousand m2 ( 1.1 %), of which 3 673.7 thousand m2 was in residential buildings (+ 5.1 %) and 2 945.0 thousand m2 in non-residential buildings ( 7.9 %). A floor space of 6 236.9 thousand m2 was obtained in new constructions and 381.8 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 September, amounts to CZK 258 427 million at current prices, which translates into a decrease of CZK 8 081 million on the corresponding period of 2006.
A total of CZK 174 325 million (an increase of CZK 1 087 million year-on-year, i.e. + 0.6 %) should be spent on construction of buildings, of which CZK 85 408 million on residential buildings (by CZK 4 344 million more) and CZK 88 917 million on non-residential ones ( CZK 3 257 million).
A total of CZK 17 637 million should be invested in constructions for environmental protection - i.e. by CZK 2 282 million less than in the corresponding period of 2006.
The approximate value for the other constructions amounts to CZK 66 465 million - a decrease of CZK 6 886 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.