Residential construction fell by 9.2 percent in the first quarter

Prague - In the Czech Republic, 10,073 apartments began construction in the second quarter, which is 9.2 percent less than in the same period last year. A total of 6,758 apartments were completed, which is about a third more than in the second quarter of 2006. The number of ongoing constructions increased by 5.9 percent to 172,968. This was announced today by the Czech Statistical Office.
    According to the Czech Statistical Office, the growth of residential construction was primarily influenced by the favorable situation in the building savings and mortgage market. "Mortgage loans in the first half of 2007 increased year-on-year by 43.4 percent, and the value of contractual principal increased by 62.3 percent," stated the Czech Statistical Office.
    The unresolved situation concerning VAT on construction work for residential buildings also played an important role, added the Czech Statistical Office.
    Statisticians recorded the largest decline in the number of started constructions in apartments located in structurally modified non-residential spaces, in non-residential buildings, in homes with care services, and care homes. The growth in the number of started apartments occurred only in the category of apartments in extensions, annexes, and conversions to apartment buildings.
    The highest proportion of ongoing constructions was in family houses (49.3 percent), while the lowest was in apartments in homes with care services and care homes (1.5 percent). "The ongoing construction rate has been steadily increasing due to the lead time of the number of started apartments compared to the number of completed apartments and includes apartments whose construction has been temporarily halted," noted the Czech Statistical Office.
    For the entire first half of the year, builders started construction on 19,238 apartments, which is 4.8 percent, or 968 apartments, less than in the same period of 2006. The number of completed apartments over the first six months rose by almost a fifth to 15,095 apartments. The number of apartments undergoing modernization increased by 7.3 percent compared to the same period in 2006.