The Czech construction industry is experiencing a remarkable upswing, with August marking the most significant year-on-year growth in over 7.5 years. Production in ground construction increased by 11.2 percent, while civil engineering soared by an impressive 27.4 percent.

This growth trend has remained uninterrupted since November of last year, with double-digit expansion becoming the norm in recent months. According to Jan Slabý from the consulting company Ecovis, this continued growth confirms strong government investment in infrastructure projects, evidenced by the approval of numerous construction projects with budgets exceeding one billion crowns.

However, experts caution that this impressive growth partly reflects comparison with last year’s unusually low baseline. Slabý also notes that the current surge correlates with the end of an electoral cycle, raising questions about the industry’s trajectory at the beginning of the new political term.

The housing sector showed mixed signals in August. While the number of completed apartments rose dramatically by 35.4 percent to 3,033 units, the number of newly started construction projects slightly decreased by 0.4 percent to 2,757 units. Despite the apparent progress, Slabý warns that housing construction remains insufficient, with the year-on-year decline in new construction starts suggesting no improvement on the horizon—potentially leading to further increases in apartment prices and rents.

Looking forward, industry watchers emphasize that digitalization of the building permit process under the new government will be crucial. Accelerating the entire construction process is essential, especially considering that investment resources for construction are abundantly available.