Construction companies in the Czech Republic expect to lay off staff in the near future. Construction output for the first quarter of 2010 remained 25 percent lower than last year.
Facts and Figures - Office premises accounted for an 83% share of 2009 investment turnover. At the end of 2009, the total area of offices in Prague was 2.7 million m2
- Industrial and retail transactions accounted for 13% and 4% of total volume. Whereas in the years 2006 to 2008 the average amount of space under construction in one quarter reached 549,000m2, in 2009 the average was only 83,000m2 and speculative development had almost disappeared – only 15% of space under construction at the end of 2009 was speculative development.
- In the residential sector the mortgage market also showed a significant decrease of 40% over the past year, confirming the fall in consumer demand for real estate. In 2009 a total of 38,500 homes were completed, just 0.4% more than in 2008, which in turn was 8% down on the previous year. A total of 37,300 dwellings were started in 2009, 14.3% less than in 2008.
- Foreign investment capital fell nearly 50 percent in 2009
Prague remains the most attractive location, accounting for 94% of all investment turnover in 2009.
Sources: CTK, Building.co.uk, CEE Construction Research. |
