Renovation boom: an increase of 20%.
This year, the total amount of investments in the renovation of residential housing in the Czech Republic is expected to reach EUR 3.26 billion, approximately CZK 81.5 billion. According to data from the association Euroconstruct, this is an increase of almost 20 per cent compared to the previous year.
The producers of building supplies and the rise in loans requested by construction firms both attest to the public’s enthusiasm for enhancing their dwellings. According to a survey conducted by Xella for the Czech Republic, one in six Czech households is in fact planning or considering the purchase of building materials. One of the main reasons for this is the increase in energy prices. In fact, in the Czech Republic, about one in four houses dates back to 1946 and renovation is often necessary (for more information, ‘Photovoltaic boom in the Czech Republic’ by Savino & Partners). According to Peter Markovi, CEO of Xella, the increase in investment in rebuilding has been distorted in some way by the collapse of last year, when investors’ interests were more concentrated on purchasing new homes and securing reasonable mortgages. But because mortgage interest rates have increased dramatically this year, banks are actually seeing fewer requests for direct loans for the acquisition of real estate, while demand for loans for repair and modernization is constantly rising. In a comparison with data from previous years, an increase of more than 50 per cent was recorded in the first half of this year alone.
Resources:
