Construction Market in The Czech Republic – Key Trends and Opportunities to 2018

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Main Title
Market Research Report 
Construction in The Czech Republic Key Trends
and Opportunities to 2018
reportscue
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Synopsis 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 type of construction
activity Analysis of equipment, material and
service costs across each project type in the
Czech Republic Critical insight into the
impact of industry trends and issues, and the
risks and opportunities they present to
participants in the Czech construction
industry Profiles of the leading operators in
the Czech construction industry. Data
highlights of the largest construction projects
in the Czech Republic
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Report OverviewThe Czech construction industry
recorded a CAGR of -5.01 during the review
period (20092013). The construction industrys
outlook is expected to be positive over the
forecast period (20142018), with growth
supported by road, rail and energy infrastructure
expansion in the country. Rising export demand
and improving employment conditions are likely to
attract investments in the industrial and
residential construction markets. CZK594.8
billion (US30.3 billion) support through the
European Union (EU) structural funds program over
20142020 will also help grow the countrys
construction industry. The industry is expected
to record a forecast-period nominal CAGR of 2.12.
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Scope This report provides a comprehensive
analysis of the construction industry in the
Czech Republic. It provides Historical
(2009-2013) and forecast (2014-2018) valuations
of the construction industry in the Czech
Republic using construction output and value-add
methods Segmentation by sector (commercial,
industrial, infrastructure, institutional and
residential) and by project type Breakdown of
values within each project type, by type of
activity (new construction, repair and
maintenance, refurbishment and demolition) and by
type of cost (materials, equipment and
services) Analysis of key construction
industry issues, including regulation, cost
management, funding and pricing Detailed
profiles of the leading construction companies in
the Czech Republic
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Key Highlights The Czech construction
industry is undergoing a testing period as a
result of subdued economic activity. The industry
went into recession and registered negative
growth rates of -6.6, 1.0, 4.1 and -9.4
during the eurozone crisis (20092012), then
started to show signs of improvement in the third
quarter of 2013. According to the Czech
Statistical Office (CZSO), the construction
industrys output (in real terms) rose by 8.4 in
the first quarter of 2014 as compared to the
first-quarter of 2013 and by 2.4 when compared
to the fourth quarter of 2013. The industry is
set to grow further, both in 2014 and over the
forecast period, due to improved economic
conditions, low interest rates and increased
investment.  In nominal terms, the total
construction value add in the Czech Republic was
CZK202.7 billion (US10.4 billion) in 2013, after
registering a nominal CAGR of -2.07 during the
review period. The value add is anticipated to
reach CZK226.3 billion (US11.1 billion) in 2018
and record a nominal forecast-period CAGR of
0.05, driven by the increase in building
construction and civil engineering construction.
According to CZSO, building construction rose
by 11.0 and of civil engineering construction
rose by 0.1 in the first quarter of 2014
compared to the same period in 2013. The overall
outlook for construction in the Czech Republic
over the forecast period remains positive.
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The country has one of the most highly
developed transport networks in Central Europe,
and is expected to develop over the forecast
period. In November 2013, the Czech government
gave consent for nationwide transport
infrastructure construction through to 2020.
The strategy was formulated to utilize European
Unions funds and invest a total of CZK67.1
billion (US3.4 billion) for the construction of
roads, rail and water infrastructure. Investment
in roads will be dominated by the construction
and repair work of motorways and expressways.
The majority of funds will be directed towards
the construction of railways with an increase in
investment by CZK18.1 billion (US928.5 million)
in 2014 compared to 2013. The government is
also looking for public-private partnership (PPP)
contracts to modernize and develop transport
networks in the country.
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According to the CZSO, construction index of
new dwellings increased from 79.4 in the first
quarter of 2013 to 104.8 in the first quarter of
2014, while the number of completed dwellings
decreased by 16.8, from 29,467 units in 2012 to
25,238 units in 2013. The country faces a
housing shortage and this, together with easily
accessible credit, has fuelled house price
rises. According to Czech National Bank (CNB),
the total gross office take up activity in the
country grew by 9.6 in 2013 on a year-on-year
basis, along with the increase in total
investment amounting to CZK41.3 billion (US2.1
billion) in 2013. This growth was largely
supported by the increase in share of
renegotiations of existing office property
projects. Renegotiations caused an increase of
6.4 in the proportion of existing projects and
reached 49.4 in 2013 compared to the previous
year. Therefore, increase in the investment and
transaction volumes of commercial real estate
properties in the Czech Republic will support
growth of the office buildings category over the
forecast period. 
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Reason To Buy Identify and evaluate market
opportunities using our 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 business strategies using Timetric's
critical and actionable insight Assess
business risks, including cost, regulatory and
competitive pressures Evaluate competitive
risk and success factors To Get Details
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