ARTICLES LABELLED WITH TAG construction

The rising prices of raw materials and ongoing supply problems result in a more challenging environment for construction, but at the same time, strong demand from developers and a focus on ESG and technology create a good opportunity for growth. Attila Beer, Country Manager of Alukönigstahl Romania talked to Property Forum about the trends driving Romania’s construction sector.

Construction of the new metro line in Prague is in sight. In the second week of March this year, the Ministry of Transport decided to reject the appeal of the opponents of the construction, who had originally appealed against the issuance of a building permit for the construction of the new metro line D. The Prague City Transport Company (DPP) is now waiting for the deadline for the decision to come into force. Then it can start the construction, the Czech Press Agency reported.

Last year, the Activity Start indicator of EBI Construction Activity Report reached a total of more than €7 billion (HUF 2,500 billion), an increase of almost 18% against 2020 and of more than 6% against 2019.

In December 2021, the construction output increased by 8.1%, year-on-year (y-o-y), in real terms. In the month-on-month (m-o-m) comparison, it was 1.8% higher. December was, in terms of year-on-year indices, the most successful month of 2021 too. The planning and building control authorities granted 8.3% more building permits, y-o-y. The approximate value of permitted constructions increased by 52.8%, y-o-y. The number of started dwellings increased by 120.8%, y-o-y. The number of completed dwellings decreased by 18.7%, y-o-y, the Czech Statistical Office (CZSO) announced in a report.

Clients interested in new industrial premises in the Czech Republic had very little to choose from last year. Thanks to record demand, which reached a record 2.39 million sqm in gross terms for the whole year, vacancy rates fell to 1.63%, a historic low. The result was also affected by a lower volume of completed industrial properties, mainly due to the impact of anti-pandemic measures. However, this changed at the end of the year when a record 800,000 sqm of industrial space was under construction. The urgent need to meet tenants' enormous demand is also evidenced by the fact that the share of speculative development has once again increased after a longer period of inactivity, 108 Agency reported today.

In 2021, PSN has grown not only in the number of collaborators but also in the number of projects and new acquisitions. It sold 294 units for CZK 1.5 billion and completed over 800 leases worth CZK 70 million. PSN's plans for the next five years include the construction of 3,000 new apartments worth CZK 11 billion and it plans to invest another CZK 10 billion in land acquisitions.

Last year, 9698 flats in Prague received final building permits, which is 5363 more than the year before and the most since 1997, the year from which data is available. This is according to data on the construction industry published by the Czech Statistical Office (CSO). In recent years, the Czech capital has been struggling with a rise in housing prices by tens of percents a year, which the city's authorities say is also due to insufficient construction. Deputy Mayor Petr Hlaváček said that with the recovery of construction, the prices of flats are expected to get cheaper in the medium term, Czech News Agency reports.

Romanian construction and logistics company Masterbuild is investing €20 million in a logistics park spanning 16,000 sqm in the Butimanu - Dâmbovița area, near Bucharest. 

In the Czech Republic, modular construction has often been used in prefabricated houses in the past. Now, developer YIT is coming up with prefabricated parts in the new residential project Lappi Hloubětín in Prague. Further use of the modules is planned in the Vesi Hostivař project, e15.cz reports.

According to the forecast of EECFA, the Romanian construction industry is poised to grow in both 2022 and 2023. The main drivers of growth vary, including low interest rates and excess liquidity that boost the residential subsector or the use of EU 2014-2020 cohesion funds to help boost civil engineering, writes Dr Sebastian Sipos-Gug from Ebuild srl / EECFA Romania.