Housing construction - 1st - 3rd quarter of 2006

Construction of 31 905 dwellings was started in Q1-Q3 2006, i.e. by 6.5% more year-on-year, and 18 166 dwellings were completed, which was by 13.5% less than in Q1-Q3 2005. There were 168 941 dwellings under construction, i.e. by 8.3% more year-on-year. 
In Q1-Q3 2006, in comparison to the same period of 2005, the numbers of dwellings started and dwellings under construction grew.
The main factors of the increase in dwellings started 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
 
The decrease in completed dwellings was affected in particular by the following factors:
-         preferential starting rather than completing of constructions
-         insufficiency of special building capacity for finishing work
 
 
Dwellings started*
      
In Q1-Q3 2006, 31 905 dwellings were started, which was up by 6.5% (+1 938 dwellings) year-on-year. The highest percentage increases were registered for dwellings in community care service homes and boarding houses (by 83.9%, i.e. +369 dwellings), dwellings in non-residential buildings (by 21.5%, i.e. +278 dwellings), dwellings in family houses (by 13.9%, i.e. +1 850 dwellings) and dwellings in multi-dwelling buildings (by 5.9%, i.e. +576 dwellings). Decreases occurred only in the numbers of dwellings obtained by extensions (by 19.8%, i.e. –814 dwellings) and dwellings in converted non-residential spaces (by 28.2%, i.e. -321 dwellings).
From the territorial point of view, most dwellings in the long term are built in the neighbourhood of large cities, especially of Prague, and in other localities of the Středočeský Region, where 11 696 dwellings were started related to the population in Q1-Q3 2006. The Liberecký and Karlovarský Regions recorded the lowest numbers of dwellings started. 

Dwellings completed
 
In Q1-Q3 2006, 18 166 dwellings were completed, which was down by 13.5% (–2 829 dwellings) year-on-year. Decreases in completed dwellings were recorded in all construction categories except extensions to multi-dwelling buildings, where growth by 18.1% (+206 dwellings) was observed. The highest decreases occurred in dwellings in community care service homes and boarding houses (by 41.4%, i.e. -285 dwellings), extensions to family houses (by 25.7%, i.e. -411 dwellings) and dwellings in non-residential buildings (by 15.3%, i.e. -79 dwellings).
From the territorial point of view, the highest numbers of dwellings completed were in the Hl. m. Praha and Středočeský Regions, the lowest in the Karlovarský, Liberecký and Královéhradecký Regions. Related to the population, most dwellings were completed in the Středočeský and Hl. m. Praha Regions, fewest in the Ústecký and Liberecký Regions.  
 
Dwellings under construction**
 
The total number of 168 941 dwellings under construction on 30 September 2006 was by 8.3% (+12 940 dwellings) higher year-on-year. The highest share in dwellings under construction was recorded for family houses (48.3%), the lowest for dwellings in community care service homes and boarding houses (1.5%).
Dwellings under construction are on the increase in the long term, because the number of dwellings started grows faster than the number of dwellings completed, and because they also include dwellings whose construction has been suspended.
 
 
Dwelling modernisations (based on building permits)
 
Modernisation of 13 728 dwellings was completed in Q1-Q3 2006, which was by 6.6% less year-on-year. Most modernisations were completed in the Hl. m. Praha and Jihomoravský Regions, fewest in the Liberecký and Vysočina Regions.
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* As from 1 January 2006, dwelling started is a dwelling for which building permit has been granted. Before 2006, dwelling started was a dwelling whose construction commenced according to the builder’s diary.
** As from 1 January 2006, the number of dwellings under construction is calculated as follows: dwellings under construction at the end of the reference period = dwellings under construction at the end of previous period + dwellings started in the reference period - dwellings completed in the reference period. 

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Note
Contact:                                Vladimír Zikmund, phone (+420) 274 054 252, e-mail: vladimir.zikmund@csu.gov.cz
Data source:                        CZSO direct survey in planning and building control authorities
End of data collection:       31 October 2006
End of data processing:    3 November 2006
The data published are final.
Related publications:        /1-ep-8
                                               8205-06 Housing Construction, Q1-Q3 2006