Czech Republic

Czech Republic

Overall construction activity

Construction production in 2025 increased by 10,9% year-on-year, which is one of the best results in the last twenty-five years. Growth was recorded in both building and civil engineering. Building construction increased by 10,5%, y-o-y (with a contribution of +6,8 percentage points) and civil engineering construction increased by 11,5% (with a contribution of 4,1 p. p.). Construction production also grew year-on-year in individual quarters, both in civil engineering and building construction. In the first quarter, when construction production increased by 9,9% year-on-year, both building and civil engineering construction increased by almost the same amount. However, due to the different weight representation, the contribution of building construction was higher (+7,1 p. p.). In the second and third quarters, both segments maintained their upward trend, with overall growth reaching double digits. In the last quarter, year-on-year production growth slowed slightly to +7,8%. The growth rate was again similar in both building and civil engineering.

For the first time in modern history, we recorded a year when all segments grew for all months. In the previous two years, there were year-on-year declines, and the turning point came in November 2024, when construction production began to grow steadily. So if we were to speculate that last year's growth was influenced by a low base, this would be only partially true. November, and especially December, confirmed the real growth in construction production.

However, from the development of the construction production index at current prices in 2025, we can already preliminarily conclude that the volume of construction could reach approximately 31,2 billion Euros. For larger companies with 20 or more employees, we tend to have more detailed data on the territorial and material structure, which do not change significantly from year to year. In terms of the volume of construction work, most of the construction work will be carried out in Prague, where it is largely the construction of residential buildings and non-residential non-production buildings. The South Moravian and Central Bohemian regions follow with a greater distance. At the opposite end of the line are the Karlovy Vary and Liberec regions, where lower numbers correspond to a smaller area.

In 2021 and 2022, rapid price increases, along with material shortages, became the main barriers to the growth of construction production. Currently, construction companies identify a lack of employees as the biggest barrier to production growth, which is confirmed by more than a third of the companies surveyed.

In 2025, 215 thousand people worked in the construction industry, which was slightly more than in the previous year. This is slightly over 5% of all employees in the economy. The average wage in the construction industry slightly exceeded 43 thousand. It increased by 10,3% year-on-year. It is probably not entirely surprising that employees are predominantly men, only 16% are women, and the average wage of women is slightly lower than that of men. Almost half of the employees have secondary education without a high school diploma and their average salary is almost half that of university students, of whom about 11% work in the construction industry. The average age of an employee in the construction industry is 45 years.


Residential construction

In 2025, 33 557 dwellings were completed, and this number increased by a tenth year-on-year. This increase was partly due to the low comparison base from the previous year. The year-on-year growth was mainly due to the category of non-residential buildings and conversions to apartment buildings. New family and apartment buildings recorded a year-on-year decline in completed dwellings. Most of the completed cases were in Prague, the Central Bohemian and South Moravian regions.

More detailed data on completed apartments in 2025 have not yet been published, but the data are rather stable. In the construction of family houses, energy class B currently prevails in terms of energy intensity, and this share grew significantly by 2022, and at the same time the representation in category C was decreasing. The average living area of one apartment is around 50 m² and the size depends very much on the specific project. Also in the category of apartment buildings, houses with energy class B predominate, apartment buildings with energy efficiency class A are rarely built.

GDP 2025

346
BILLION

POPULATION 2025

10902000

Total investment in construction in 2025

32
BILLION

Civil engineering

We can judge the future development of the sector according to some leading indicators. For the construction industry, it is the value of new construction contracts, which we monitor for companies with 50 or more employees. The total value of these contracts last year amounted to 17 billion Euros  at current prices, which meant a year-on-year growth of 9,8%. In building construction, new construction contracts amounted to 7,4 billion Euros  and increased by 5,1%, y-o-y. Civil engineering contracts grew more than building contracts, by 13,7%, reaching  9,5 billion Euros.

The development in individual segments and quarters was significantly different. New building construction orders were lower year-on-year at the beginning of 2025 and only grew in the 2nd half of the year. On the other hand, contracts in civil engineering construction recorded high increases in the first half of the year, but the 4th quarter brought their one-fifth decline.

Another leading indicator is the approximate value of issued building permits, which reached 20,1 billion Euros last year and decreased by 13,3% year-on-year (at current prices), mainly due to new construction of civil engineering and non-residential buildings. A year-on-year increase was recorded thanks to transport constructions by the indicative value of changes in completed constructions. From a quarterly perspective, the indicative value of issued building permits increased only in the 3rd quarter. In 2025, 51 constructions with budgets over  0,4 billion Euros were permitted. However, this did not prevent the overall decline in the estimated value of the buildings.

Prices of construction materials

In contrast to industrial producer prices, construction prices continued to rise by 3,0% last year. However, industrial producer prices also increased in sectors related to construction production. A huge price jump was recorded in 2021 and 2022 for all building materials. In some cases, growth has stopped (construction products made of clay materials or metals), prices of other products have not stopped rising (wood, refractory products, cement).

 Construction Activity

 

 Number of building permits in residential