Wednesday, 27 August 2025
Construction activity in the Czech Republic expanded in the first quarter of 2025, with total output increasing by 7.4% year-on-year, according to newly released data. The growth was driven by both building construction and civil engineering sectors. Compared to the final quarter of 2024, construction production rose by 3.4%.
Building construction posted a 6.8% increase from the same period last year, contributing 4.9 percentage points to overall growth. Meanwhile, civil engineering construction saw a stronger rise of 9.1%, adding 2.5 percentage points.
Construction companies employing 50 or more workers secured contracts worth CZK 99.3 billion in the first quarter, marking a 15% increase year-on-year. While new building construction orders fell by 4.2% to CZK 42.1 billion, civil engineering orders climbed 34.9% to CZK 57.2 billion. The average value of newly awarded contracts rose sharply to CZK 7.9 million, up 70.9% from a year earlier.
The total value of construction projects permitted in the first quarter was CZK 115.5 billion, down 18% from the previous year. This decline was largely attributed to fewer new civil engineering projects and a high comparison base from 2024. Despite the overall decrease, approvals for non-residential buildings and transport-related constructions recorded year-on-year gains. Higher levels of planned investment were noted in Prague, the Central Bohemian Region, and the South Moravian Region.
Housing construction also showed mixed results. A total of 8,297 dwellings were started in the first quarter, a 2.9% increase year-on-year. Growth was led by a 14.9% rise in multi-unit residential projects and a notable increase in conversions of existing buildings. In contrast, new single-family home construction continued to slow, with starts falling 15.9% compared to the same period last year. Conversions of family homes and new dwellings in non-residential buildings also declined. The highest number of housing starts was reported in Prague, the Central Bohemian Region, and the South Moravian Region.
Completions fell across the board. A total of 6,642 dwellings were completed in the first quarter, representing a 17.3% year-on-year decline. All categories of residential construction posted decreases, with completions of single-family homes recording the steepest drop. Only conversions of family homes posted a slight increase. The highest numbers of completed dwellings were in the Central Bohemian Region, Prague, and the South Moravian Region.
The latest figures highlight a construction sector still balancing growth in large infrastructure and multi-family projects against ongoing challenges in the housing market, particularly for family homes.
Source: CSO
