The Czech construction sector maintained its impressive growth trajectory in September, though at a more moderate pace than previous months. Construction output rose 12.8% year-on-year, down from August’s robust 17% increase, while monthly figures showed a 3.2% decline. Despite the slowdown, the sector delivered a standout result in housing completions, which surged 69.5% compared to the previous year.

The growth was broadly distributed across different construction segments. Civil engineering projects—including roads, telecommunications networks, and energy infrastructure—led the way with 15.9% growth, slightly outpacing the 11% increase in building construction.Petra Cuřínová from the Czech Statistical Office noted that September marked the seventh consecutive month of double-digit growth, partly attributable to favorable year-over-year comparisons, as last September’s construction activity had been hampered by unusually heavy rainfall.

However, the sector faces headwinds in new residential development. While September saw construction begin on 3,556 apartments—the highest monthly figure this year—this still represented a 20% decline from the previous year’s strong baseline.The first nine months of 2025 witnessed nearly an 8% drop in housing starts, with the Pilsen region and Prague experiencing particularly sharp declines.

Petr Dufek, chief economist at CREDITAS Bank, painted a concerning picture of the housing market dynamics. “With fewer than 35,000 housing units started over the year, supply is falling while demand continues to grow. The inevitable result of these opposing trends is further price increases,” he explained.Building permits for new apartments remain troublingly low, barely crossing the 1,000-unit threshold for the first time in a year—a figure Dufek characterized as “dismal” whether viewed historically or against the country’s needs.

Despite these challenges in residential construction, the overall construction sector remains a bright spot in the Czech economy. The value of building permits issued in September reached 41.5 billion crowns, though this represented an 8% year-over-year decrease.As Dufek concluded, “The construction sector is performing very well this year and, despite its size, has become one of the engines of economic growth.”