Czech residential construction rises amid housing shortages

Residential construction in the Czech Republic is experiencing a significant surge, contrasting with a general decline in the broader construction sector. According to the Czech Statistical Office, the number of new apartment starts in August rose by 42.3% year-on-year, totaling 3,922 units. While engineering construction fell by 12.3%, residential development remains a primary driver for the industry.

In Brno, the city has launched a major cooperative housing project at Kamenný vrch. This development will include over 350 apartments, with approximately 280 units designated for cooperative living. The project is financed through a 1.7 billion CZK loan from ČSOB and future resident contributions. The cost for cooperative members is set at 107,839 CZK per square meter, which is notably lower than the average market price for new builds in Brno, currently approaching 149,000 CZK per square meter.

Despite the growth, market challenges persist. While large developers benefit from capital reserves and banking relationships, smaller regional players face difficulties securing financing. Other municipal projects in Brno, including reconstructions in Mostecká and new builds in Holásky, are also slated to begin construction next year.