Construction in Czech Republic – Key Trends and Opportunities to 2025 (H1 2021)

The Coronavirus (COVID-19) pandemic significantly disrupted the Czech Republic’s economy, with containment measures bringing many key sectors to a standstill, and causing a decline in construction output last year. The country’s construction industry fell by 3.5% in real terms in 2020, following an annual growth of 1.4% in 2019. The industry’s output value decreased from US$37.2 billion in 2019 to US$35.9 billion in 2020.

According to the Czech Statistical Office (CZSO), the country’s construction production index fell by 4.9% year on year (YoY) in 2020, and 5.8% in the first four months of 2021. Although building construction activities declined in 2020, civil engineering works maintained strong growth. The average construction production index for civil engineering works grew by 4.3% YoY in 2020, and declined marginally by 1.6% YoY in January-April 2021, while building works declined by 8.3% and 7.5%, respectively, during the same period.

GlobalData expects the Czech construction industry to recover this year; the vaccine rollout, coupled with the expected improvement in economic conditions, will support growth in the industry. Although the industry will be affected by the reimposition of lockdown measures to tackle the third wave of infections in the first half of the year. The industry’s growth will be supported by the increasing business confidence, with the average business confidence index in the construction industry increasing to 115.2 in May 2021, compared to 110.9 in April 2021 and 103.6 in May 2020, according to the CZSO. GlobalData forecasts the construction industry to expand by 2.3% in 2021. Over the remainder of the forecast period, output is expected to register an average annual growth rate of 2.8% between 2022-2025.

In October 2020, the government approved the 2021 budget worth CZK1.8 trillion (US$72.3 billion). The government also agreed to a draft budget of CZK128.7 billion (US$5.1 billion) for the State Fund for Transport Infrastructure for 2021, with a medium-term outlook for 2022 and 2023. Of the total, CZK83 billion (US$3.3 billion) is planned for capital expenditure. Through this, the government plans to support municipalities and regions by contributing to the repair of roads and increasing the amount of funds made available for investments by the State Transport Infrastructure Fund.

This report provides detailed market analysis, information and insights into the Czech construction industry, including –

– The Czech construction industry's growth prospects by market, project type and construction activity

– Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Czech construction industry

– Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in the Czech Republic. It provides –

– Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Czech Republic, featuring details of key growth drivers.

– Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector

– Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.

– Listings of major projects, in addition to details of leading contractors and consultants

Reasons to buy

– Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.

– Assess market growth potential at a micro-level with over 600 time-series data forecasts.

– Understand the latest industry and market trends.

– Formulate and validate strategy using GlobalData's critical and actionable insight.

– Assess business risks, including cost, regulatory and competitive pressures.

Table of Contents

Table of Contents

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 COVID-19 Status

3.5 Risk Profile

4 Construction Outlook

4.1 All Construction

– Outlook

– Latest news and developments

– Construction Projects Momentum Index

4.2 Commercial Construction

– Outlook

– Project analytics

– Latest news and developments

4.3 Industrial Construction

– Outlook

– Project analytics

– Latest news and developments

4.4 Infrastructure Construction

– Outlook

– Project analytics

– Latest news and developments

4.5 Energy and Utilities Construction

– Outlook

– Project analytics

– Latest news and developments

4.6 Institutional Construction

– Outlook

– Project analytics

– Latest news and developments

4.7 Residential Construction

– Outlook

– Project analytics

– Latest news and developments

5 Key Industry Participants

5.1 Contractors

5.2 Consultants

6 Construction Market Data

7 Appendix

7.1 What is this Report About?

7.2 Definitions

7.3 CRI Methodology

7.4 GlobalData Construction

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List of Tables

List of Tables

Table 1: Construction Industry Key Data

Table 2: The Czech Republic, Key Economic Indicators

Table 3: The Czech Republic, Commercial Construction Output by Project Type (Real % Change), 2016-2025

Table 4: The Czech Republic, Top Commercial Construction Projects by Value

Table 5: The Czech Republic, Industrial Construction Output by Project Type (Real % Change), 2016-2025

Table 6: The Czech Republic, Top Industrial Construction Projects by Value

Table 7: The Czech Republic, Infrastructure Construction Output by Project Type (Real % Change), 2016-2025

Table 8: The Czech Republic, Top Infrastructure Construction Projects by Value

Table 9: The Czech Republic, Energy and Utilities Construction Output by Project Type (Real % Change), 2016-2025

Table 10: The Czech Republic, Top Energy and Utilities Construction Projects by Value

Table 11: The Czech Republic, Institutional Construction Output by Project Type (Real % Change), 2016-2025

Table 12: The Czech Republic, Top Institutional Construction Projects by Value

Table 13: The Czech Republic, Residential Construction Output by Project Type (Real % Change), 2016-2025

Table 14: The Czech Republic, Top Residential Construction Projects by Value

Table 15: The Czech Republic, Key Contractors

Table 16: The Czech Republic, Key Consultants

Table 17: The Czech Republic, Construction Output Value (Real, US$ Million)

Table 18: The Czech Republic, Construction Output Value (Nominal, CZK Billion)

Table 19: GlobalData Construction Market Definitions

Table 20: Risk Dimensions

Table 21: Ratings, Scores and Definitions

List of Figures

List of Figures

Figure 1: Eastern Europe, Construction Output (Real % Change), 2020 and 2021

Figure 2: The Czech Republic, Construction Projects Pipeline by Sector (US$ Billion)

Figure 3: The Czech Republic, COVID-19 Confirmed Cases

Figure 4: The Czech Republic, Risk Summary

Figure 5: The Czech Republic, Risk Regional Comparison

Figure 6: The Czech Republic, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2016-2025

Figure 7: The Czech Republic, Construction Output Value, by Sector (Real, US$ Million), 2016-2025

Figure 8: The Czech Republic, Construction Value-Add (CZK Billion, 2015 Chain-Linked Volumes)

Figure 9: The Czech Republic, Construction Production Index, % Change YoY (seasonally adjusted, 2015=100)

Figure 10: The Czech Republic, Total Gross Fixed Capital Formation, % Change YoY (2015 Chain-Linked Volumes)

Figure 11: The Czech Republic, Economic Sentiment Indicator, Business and Consumer Confidence Indicator

Figure 12: The Czech Republic, Total Value of New Orders for Construction (CZK Billion)

Figure 13: The Czech Republic, Approximate Value of Total Building Permits Issued (CZK Billion)

Figure 14: The Czech Republic, Construction Projects Momentum Index

Figure 15: Eastern Europe, Construction Projects Momentum Index

Figure 16: The Czech Republic, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 17: The Czech Republic, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 18: The Czech Republic, Trade, Transportation, Accommodation and Food Service Value-Add (Chain-linked Volumes of 2015, CZK Billion)

Figure 19: The Czech Republic, The Czech Republic, Retail Trade Sales Index (Excluding Motor Vehicles and Motorcycles) (% change YoY)

Figure 20: The Czech Republic, Total Arrivals and Overnight Stays of Guests in Collective Accommodation Establishments (% Change Year On Year)

Figure 21: The Czech Republic, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 22: The Czech Republic, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 23: The Czech Republic, Manufacturing Value-Add (CZK Billion, 2015 Chain-Linked Prices)

Figure 24: The Czech Republic, Industrial and Manufacturing Production Index, % Change YoY (2015=100)

Figure 25: The Czech Republic, Total Cars Produced

Figure 26: The Czech Republic, New Industrial Orders Index (2015=100)

Figure 27: The Czech Republic, Total Value of Goods Export (CZK Billion), in Current Prices

Figure 28: The Czech Republic, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 29: The Czech Republic, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 30: The Czech Republic, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 31: The Czech Republic, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 32: The Czech Republic, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 33: The Czech Republic, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 34: The Czech Republic, Public Administration, Education, Health and Social Work Value-Add (Chain-linked Volumes of 2015, CZK Billion)

Figure 35: The Czech Republic, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 36: The Czech Republic, Residential Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 37: The Czech Republic, Real Estate Activities Value-Add (Chain-linked Volumes of 2015, CZK Billion)

Figure 38: The Czech Republic, Number of Residential Building Permits Issued

Figure 39: The Czech Republic, Total Number of Residential Dwellings Started

Figure 40: The Czech Republic, Total Residential Dwellings Completed (Excluding Extension Work)

Figure 41: The Czech Republic, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 42: The Czech Republic, Headquarters of Key Consultants (% of Total Project Pipeline)

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