The Czech construction market still continues to decline at single-digit pace and growth in output is only likely to return in 2014 to 2015, according to market research company PMR.
Cancelled civil engineering construction, particularly in the road infrastructure sector, combined with weaker development in the non-residential segment are lowering expectations for a marked recovery in output sooner than 2015.
Czech construction output continued to drop in 2012, the fourth consecutive year of decline, falling 6% to CZK423 billion (€16.7 billion), a figure below 2005's construction output.
Civil engineering construction continued its market dominance, helped along by a decline in non-residential construction. According to PMR, preliminary data indicates that civil engineering saw its share of total Czech construction output drop by 3% in 2012 reaching 41%.
In non-residential construction, the number and value of building permits for new buildings recovered slightly in 2012. PMR expects growth in office space, but forecast that the construction of retail, industrial and warehouse facilities is likely to continue to be low in 2013 and possibly the following two years as well.
The residential construction market continues to be extremely volatile with developers still very cautious, as demand for residential space is yet to pick up, PMR stated.
Housing completion dropped by almost 20% year on year in 2012, reaching 23,000 units. However, the number of housing completions is expected to pick up slowly from 2013, but growth will remain moderate in single-digit percentages.
Prague is expected to continue to dominate the market, with some 40% of the total number of completions coming in the Prague and Central Bohemia area in 2013 to 2015.