The Czech construction industry saw an 8.2% year-on-year increase in January 2025, marking its third consecutive month of growth, according to the Czech Statistical Office. Building construction rose by 8.7%, while civil engineering projects, including roads and utilities, grew by 6.9%. However, the value of newly permitted projects dropped by 28.7% due to fewer building permits.

The housing sector faced setbacks, with new housing starts falling by 27% and completed units dropping by 41%. Despite this, employment remained stable, with a slight 0.2% increase in workforce numbers, and wages grew by 5.9%. Analysts caution that the strong growth rate is partly due to a low base effect from the previous year.

Despite challenges, the Czech construction market remains attractive for foreign companies due to its skilled workforce, growing infrastructure investments, and competitive costs. Ongoing public projects, especially in transportation and energy, present opportunities for international firms looking to expand in Central Europe.

Source: Czech Daily

Prepared by the CzechTrade United Kingdom & Ireland Office