Construction in southern Moravia grew by a quarter, the most in the Czech Republic

Brno - In South Moravia, over 25.5 billion crowns were spent on construction from January to September last year, which is a quarter more than in the same period last year. More than 22,300 people were employed in the sector, which is a ten percent increase. The growth in construction and the number of employees is the highest in the Czech Republic. Salaries in the sector have also increased the most in South Moravia compared to all other regions, with the average salary exceeding 19,900 CZK. This is evident from data from the Czech Statistical Office.
    The region has over 300 construction companies with more than 20 employees, the second highest in the Czech Republic right after Prague. It is also the second most successful region in terms of investment in construction. Nevertheless, in the first three quarters of last year, only about half as much was spent on construction as in the capital. The Moravian-Silesian Region ranks third with investments of about 13 billion. Significant growth was not hindered even by the adverse weather in the first half of the year.
    "It is a spiral, where one thing leads to another," says Karel Potměšil, an analyst at Cyrrus. "The attractiveness of Brno as a regional center with job opportunities is increasing, among other things due to the influx of new investors. They are also contributing to the growth of construction production. More job opportunities and rising purchasing power subsequently support the construction of commercial and entertainment centers," he described.
    However, the spiral cannot be unwound indefinitely, warns Jiří Fajkus, head of RealSpektrum. Especially in residential construction, the lack of land will gradually start to manifest. This is already evident in the Brno-venkov district, where construction has dropped by a fifth compared to the three quarters of 2005.
    Residential units would significantly help the overall growth in the region. People are taking advantage of favorable mortgages, plus they are worried about the increase in the value-added tax for residential construction planned for 2008. "The influence of strong age groups from the 1970s, who are currently addressing their housing situation," added Potměšil.
    While residential construction is at its peak, there will still be a significant increase in commercial and industrial properties, believes Fajkus. A number of manufacturing halls are currently being built in Brno, for example on Černovická terrace. Administrative complexes are also being created, and this year the construction of the Spielberk Office Center on Heršpická Street will continue, and two more buildings in the Brno Business Park are expected to arise nearby.
    Construction grew faster than the number of workers, so labor productivity was 13 percent higher. There wouldn’t be more builders anyway, pointed out Ivana Ondráková, spokesperson for the Brno Labor Office. "Last year, we recorded several hundred vacancies in construction in the region. The shortage is long-term, and companies are addressing it by hiring foreigners," said the spokesperson. Every fourth worker on a construction site is thus from abroad, with the most being Ukrainians.