Residential construction in Olomouc region dropped 40% in early 2025 despite national growth

Residential construction in the Olomouc region saw a sharp decline in the first quarter of 2025, with only 280 housing units breaking ground between January and March—a 40 percent drop compared to the same period last year, according to data from the Czech Statistical Office (ČSÚ). This decline contrasts with the national trend, where the number of housing starts increased by 2.9 percent year-on-year to a total of 8,297 apartments.

In the Olomouc region, most of the construction activity in the first quarter focused on new developments, accounting for 211 of the 280 residential units. Of these, 150 were intended for family homes and 61 were part of new apartment buildings. The remaining 69 apartments were started within completed or ongoing projects.

The slowdown comes after a strong year in 2024, when the region saw a rebound in housing activity. That year, 1,694 apartments began construction—an increase of 14.5 percent compared to 2023. Two years ago, 1,475 apartments were started, which itself was a 34.6 percent drop from the previous year, following a one-third increase in 2022.

In recent years, construction activity has concentrated in the city of Olomouc, supported by a number of major residential developments. Projects have included the transformation of former military barracks and industrial sites into residential complexes. Sochorova stavební developed over 300 apartments in the city center, while Link City Centrum NS delivered more than 200 units on the site of former malt houses and cold storage facilities. Redstone is also progressing with its Šantovka Living project, which is set to deliver 12 apartment buildings near the city center.

Looking ahead, several large-scale developments are in the pipeline. Stafos-Real plans to build a residential complex with 381 apartments in the Olomouc-Nové Sady district. Objekt Invest is preparing one of the largest projects, Green City, a new urban quarter expected to house over 5,100 residents in more than 2,000 apartments. This development will also feature 64 commercial spaces, projected to create around 80 jobs.

Despite a promising outlook for future developments, the slowdown in early 2025 reflects broader challenges in the construction sector, including permitting delays, financing constraints, and fluctuating market demand.

Source: ČSÚ and CTK