Housing Construction

Commentary

In Q1 2006, in comparison to Q1 2005, the numbers of dwellings started and completed and dwellings under construction increased. The main factors of growth of housing construction remain unchanged. They are:

favourable situation on the mortgage market
higher amount of saving-in-building-society loans
support for young married couples in providing themselves with the first dwelling
expected changes in the VAT rate for housing construction to be effective from 1 January 2008

          Dwellings started^*)


      In Q1 2006 construction of 9 117 dwellings was started, which was by 5.5% (+472 dwellings) more than in Q1 2005. The highest increases were registered for dwellings in converted non-residential spaces (+30.6%, i.e. 75 dwellings), dwellings in extensions to multi-dwelling buildings (+27.1%, i.e. 106 dwellings) and dwellings in multi-dwelling buildings (+12.7%, i.e. 389 dwellings). A decrease in the number of dwellings started occurred especially in dwellings obtained by extensions to family houses (-35.0%, i.e. 274 dwellings).
         From the territorial point of view, most dwellings in the long run are built in the neighbourhood of large cities, in particular in the vicinity of Prague and in other localities of the Středočeský Region. Construction of 3 771 dwellings was started there in Q1 2006. The lowest numbers of dwellings were started in the Liberecký and Karlovarský Regions. Related to the population, most dwellings were started in the Středočeský and Hl. m. Praha Regions, fewest in the Liberecký and Ústecký Regions.

^*)From 1 January 2006, dwelling started is a dwelling for which building permit has been issued. Before 2006, dwelling started was a dwelling whose construction was started according to the entry in the building logbook.

Dwellings completed

              In Q1 2006, 6 929 dwellings were completed, which was by 7.4% (+477 dwellings) more year-on-year. The fastest increases were recorded for dwellings in converted non-residential spaces (+43.8%, i.e. 114 dwellings), in multi-dwelling buildings (+40.5%, i.e. 738 dwellings) and in extensions to multi-dwelling buildings (+23.7%, i.e. 71 dwellings). Decreases in the numbers of dwellings completed were registered for dwellings in nursing-care houses and boarding houses for pensioners (‑60.1%, i.e. 170 dwellings), dwellings in extensions to family houses (-18.7%, i.e. 113 dwellings) and dwellings in non-residential buildings (-55.3%, i.e. 151 dwellings).
            From the territorial point of view, the highest numbers of dwellings completed were in the Hl. m. Praha Region and in the Středočeský Region, the lowest in the Karlovarský, Liberecký and Zlínský Regions. Related to the population, most dwellings were completed in the Středočeský and Hl. m. Praha Regions, fewest in the Zlínský and Moravskoslezský Regions.

The total of 157 390 dwellings under construction on 31 March 2006 was by 5.7% (+8 505 dwellings) higher year-on-year. The highest share in dwellings under construction was recorded for family houses (47.7%), the lowest then for nursing-care houses and boarding houses for pensioners (1.5%).
The number of dwellings under construction is on the increase in the long run because the number of dwelling started rises faster than the number of dwellings completed and because it includes also dwellings whose construction has been suspended.

^*)From 1 January 2006, the number of dwellings under construction is calculated as follows: dwellings under construction at the end of previous period + dwellings started in the reference period - dwellings completed in the reference period = dwellings under construction at the end of the reference period.

Dwelling modernisations (based on building permits)

Modernisation of 5 175 dwellings was completed in Q1 2006, which was by 5.2% less year-on-year. Most modernisations were completed in the Hl. m. Praha Region and in the Jihomoravský Region, fewest in the Ústecký and Liberecký Regions.