Czech Chamber of Commerce urges construction reform amid housing growth

The Czech Chamber of Commerce (HKCR) is urging lawmakers to finalize construction law reforms to address some of Europe’s slowest and most complex permitting processes. HKCR President Zdeněk Zajíček stated that the country cannot afford further delays, as unpredictable permitting hinders strategic investments in housing, energy, transport, and data infrastructure. The Chamber supports centralizing construction administration into a unified state body to standardize decision-making and increase accountability, while leaving territorial planning to local municipalities.

In the housing sector, Czech residential construction is showing signs of recovery. In July, new apartment starts increased by 11.7% year-on-year, and completed apartments rose by 46.1%. Notably, the South Moravian region is currently outpacing Prague in terms of ongoing apartment construction.

Despite this growth, experts warn that housing prices are unlikely to decrease in the near future due to supply failing to meet high demand. Economic analysts from Creditas and Komerční banka note that construction remains hampered by lengthy permitting processes and labor shortages, which may limit the overall impact of the recent uptick in activity.