The number of started apartment constructions in the first half of the year increased by 14.2%

Prague - In the Czech Republic, 20,206 apartments began construction in the first half of this year, which is 14.2 percent more than in the same period last year. A total of 12,117 apartments were completed, which is 3.2 percent less than in the first half of last year. There are 163,291 apartments under construction, which is 7.3 percent more than the previous year. This was announced today by the Czech Statistical Office.
The growth in housing construction was influenced, according to the CSO, mainly by favorable conditions in the mortgage market, higher loan amounts in the framework of building savings, support for young couples in acquiring their first apartment, and expected changes in VAT for housing construction from January 2008. The decline in the number of completed apartments is likely due to capacity reasons. Developers are taking advantage of the current demand for apartments and prefer to initiate the construction of new ones.
According to analyst Petr Dufek from ČSOB, low interest rates, the threat of higher VAT, and people's interest in new housing also stimulate housing construction. Dufek labeled the decline in completed apartments as a fluctuation related to the completion of large residential complexes. "In any case, this year and next year will be a record period for housing construction," Dufek stated.
From a geographical perspective, the most apartments are consistently built around large cities, especially in the vicinity of Prague and in other locations in the Central Bohemian Region. In the first half of this year, construction of 7,884 apartments was initiated here. The least number of apartments began construction in the Liberec and Karlovy Vary regions. In relation to the population, the most apartments were initiated in the Central Bohemian Region and Prague, with the least in Liberec and Ústí nad Labem regions.
The highest number of completed apartments was also in Prague and the Central Bohemian Region, while the least was in Karlovy Vary, Liberec, and Zlin regions. In relation to the population, the most apartments were completed in the Central Bohemian Region and Prague, with the least in Ústí nad Labem and Liberec regions.