In South Bohemia, permits for the construction of new apartments are on the rise

České Budějovice - In South Bohemia, the number of permits for the construction of new apartments is increasing. Authorities issued the necessary stamp on 722 applications by June, which is 15 percent more than in the first half of last year. The region ranks fourth among 13 regions and Prague in this regard. The data was published by the Czech Statistical Office. People are also increasingly investing in the modernization of apartments. In the first half of the year, 859 households in South Bohemia decided to improve their old housing, which is six percent more year-on-year.
According to experts, this trend is driven by cheap and increasingly accessible mortgages, rising average wages, and fears of further increases in real estate prices. However, people were also pushed towards apartment investments by upcoming changes in construction work that will lead to a higher value-added tax. This year's mild winter also influenced the number of commenced constructions.
Builders completed 692 new apartments between January 1 and June 30, compared to 666 that their owners took over during the first six months of last year. Developers are currently betting the most on apartment construction. Experts say that its growth is related to the overall development of the region and the arrival of new investors.
From January to June, officials in the region issued a total of 4,146 permits and notifications for constructions to companies or private individuals. Compared to the same period last year, this was 280 fewer. There has been a significant decrease in permits for environmental protection constructions. The indicative value of constructions in South Bohemia also decreased by a fifth to 7.5 billion crowns.
In the Czech Republic, 54,702 construction permits and notifications were issued in the first half of the year, which is nine percent less year-on-year. The indicative value of constructions did not change significantly. At the end of June, it reached 167.8 billion crowns, which represented a year-on-year decrease of 1.6 billion crowns.