Analysis of the development of construction - 3. quarter of 2005
Publication Date: 09. 11. 2005
Product Code: e-8216-05
Construction in the 3rd quarter of 2005
Total construction output in Q3 2005 grew by 7.5% year-on-year.
In Q3 2005, construction was dominated by:
- construction of civil engineering works (in particular highways, with more than 100 km being under construction);
- granting of building permits for new dwellings (12 919 dwellings were permitted for construction, which is the highest quarterly figure since 1999).
The data reported for Q3 2005 mirrored the real situation in construction because the influence of the change in VAT (effective since 1 May 2004) already faded away.
Construction output
Construction work in Q3 2005 by size of enterprises
Size of enterprises by number of employees | Structure by construction work volume, % | Index, % |
| Total | 100.0 | 107.5 |
| Small enterprises 0 - 19 20 - 49 | 44.0 31.1 12.9 | 107.5 109.0 103.8 |
| Medium enterprises 50 - 99 100 - 249 | 20.0 10.4 9.6 | 95.9 98.1 93.7 |
| Large enterprises 250 - 499 500+ | 36.0 8.2 27.8 | 115.3 117.0 114.8 |
- new construction, reconstruction and modernization 8,3 %
- repair and maintenance -5,5 %
- building 0,7 %
- civil engineering 14,5 %
Employment
In Q3 2005, total employment in construction (as measured by the LFSS) rose by 5.5%, the number of employees (+6.9%) and number of self-employed (+3.1%) was up. Out of that, construction enterprises with 20+ employees in Q3 2005 employed 167.1 thousand persons (5.1% up on Q3 2004), of which 110.8 thousand were manual workers (+5.3%).
Wages
The average monthly nominal wage in enterprises with 20+ employees reached CZK 19 177 in Q3 2005 and was 5.1% up on the corresponding period of 2004; the hourly wage reached CZK 129 (+4.9%). The average monthly wage of non-manual and manual workers was 6.8% and 3.8% up year-on-year, respectively.
Labour productivity
In Q3 2005, labour productivity in enterprises with 20+ employees was 1.6% up on Q3 2004 (constant prices). Labour productivity per hour decreased by 1.7%, unit wage costs increased by 3.4%.
Building permits
The planning and building control authorities granted 41 086 building permits in Q3 2005, which was 3.6% down on Q3 2004. The approximate value of the constructions permitted for implementation reached CZK 91.6 billion, which was by 6.3% more than in the corresponding period of 2004.
Growth and structure of building permits in Q3 2005
Approximate value | ||||
Number | Y-o-y index, % | CZK million | Y-o-y index, % | |
| Residential buildings | 13 577 | 95.5 | 30 376 | 117.3 |
| Non-residential buildings | 7 463 | 90.8 | 28 581 | 105.5 |
| Environmental constructions | 9 772 | 96.3 | 7 989 | 113.8 |
| Other constructions | 10 274 | 102.5 | 24 636 | 94.3 |
Housing construction
In Q3 2005, the planning and building control authorities permitted 12 919 new dwellings for construction—by 23.6% more than in the corresponding period of 2004. New construction will provide 11 027 dwellings (+34.5%), particularly in residential buildings (10 752), while 1 892 dwellings (-16.1%) will be obtained by renewals and enhancements. Out of the total number of newly permitted dwellings, 12 089 will be built in residential buildings (+2 292 dwellings).
The approximate value of the newly permitted dwellings in residential buildings reached CZK 25.5 billion (+21.6% year-on-year). The average acquisition value of a new dwelling in a new residential building thus amounts to 2.2 million, whereas a new dwelling obtained by renewal or enhancement in an existing residential building comes to CZK 1.2 million.
Territorially and in the long run, most dwellings are built in the surroundings of large cities, especially around Prague and in the Středočeský Region. In Q3 2005, construction of 5 938 new dwellings was commenced in these localities. The smallest number of dwellings will be built in the Karlovarský Region (192). When related to the number of inhabitants, fewest dwellings will be built in the Moravskoslezský Region.
