Housing construction - 1st half of 2006

Construction of 20 206 dwellings was started in the first six months of 2006, i.e. by 14.2% more year-on-year, and 12 117 dwellings were completed, which was by 3.2% less than in the first half of 2005. In total 163 291 dwellings were under construction, i.e. by 7.3% more year-on-year.
In the first half of 2006, compared to the same period of 2005, the numbers of dwellings started and dwellings under construction increased. The main factors of the 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 Q2 2006, in comparison to Q2 2005, the number of dwellings started grew by 22.6% (+2 047 dwellings).
In the first half of 2006, construction of 20 206 dwellings was started, which was by 14.2% (+2 519 dwellings) more year-on-year. The highest increases were registered for dwellings in non-residential buildings (by 65.0%, i.e. +473 dwellings), dwellings in community care service homes and boarding houses (by 45.5%, i.e. +174 dwellings) and dwellings in multi-dwelling buildings (by 23.6%, i.e. +1 268 dwellings). A fall occurred only in dwellings obtained by extensions to family houses (by 27.3%, i.e. –443 dwellings).
From the territorial point of view, most dwellings in the long term 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 7 884 dwellings was started there in the first half of 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.

 
Dwellings completed
 
In Q2 2006, compared to Q2 2005, the number of dwellings completed was down by 14.5% (–880 dwellings).
In the first half of 2006, 12 117 dwellings were completed, which was by 3.2% (-403 dwellings) less year-on-year. Decreases were recorded for dwellings in community care service homes and boarding houses (by 47.6%, i.e. -190 dwellings), extensions to family houses (by 27.9%, i.e. -315 dwellings) and dwellings in non-residential buildings (by 26.3%, i.e. -110 dwellings). On the increase were dwellings completed as extensions to multi-dwelling buildings (by 35.8%, i.e. +245 dwellings) and dwellings in converted non-residential spaces (by 35.1%, i.e. +176 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 Zlínský 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 of 163 291 dwellings under construction on 30 June 2006 was by 7.3% (+11 177 dwellings) higher year-on-year. The highest share of dwellings under construction was recorded for family houses (48.0%), the lowest for dwellings in community care service homes and boarding houses (1.6%).
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 was suspended.
  
 
Dwelling modernisations (based on building permits)
 
Modernisation of 9 011 dwellings was completed in the first half of 2006, which was by 13.9% less year-on-year. Most modernisations were completed in the Hl. m. Praha and Jihomoravský Regions, fewest in the Ústecký and Liberecký Regions.

---

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:       30 July 2006
End of data processing:    8 August 2006
The data published are final.
Related publications:        /1-ep-8
                                               8205-06 Housing Construction, first half of 2006
 

---

* ⁾ The number of mortgage loans granted to the population was up by 37.2% year-on-year and the total value of contracted principal by 46.7% (Source: Ministry for Regional Development of the CR).
** ⁾ As from 1 January 2006, dwelling started is a dwelling that has received building permit. 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.