Demand for wooden buildings is increasing in the Czech Republic

Source
Daniel Novák
Publisher
ČTK
05.08.2011 14:50
Czech Republic

Prague

Prague - Prefabricated houses, so-called wooden constructions, are becoming increasingly popular in the Czech Republic. While the number of new family homes started last year declined for the second consecutive year, the construction of wooden houses increased during the same period. This was stated today by Blanka Stávková, spokeswoman for the Association of Suppliers of Prefabricated Houses (ADMD), in response to a query from ČTK.
      "There are several reasons why the demand for wooden constructions is growing. One reason is the energy costs, which currently represent a significant expense in every household," the association's spokeswoman said.
      In the Czech Republic, approximately 1,500 wooden constructions were built in 2010, which is a year-on-year increase of 15 percent. Conversely, the number of new family homes started during the same period decreased by 11 percent to 16,611 according to the Czech Statistical Office (ČSÚ).
      According to the ADMD representative, comparing completed wooden constructions with newly started family homes as a whole is misleading. "The average construction time for a brick family house is two years, whereas you can have a wooden construction completed in three months," the association's spokeswoman stated. The speed of construction and lower building costs are, according to Stávková, additional factors that increase demand for wooden constructions.
      Suppliers of prefabricated houses believe that the demand for wooden buildings will grow throughout this year as well. The latest figures from the ČSÚ showed that overall construction of family homes is also faring better. Builders started constructing 11 percent more homes in May compared to the previous year.
      The growing popularity of wooden constructions has also caught the attention of banks. "The construction of prefabricated houses is very fast and currently in high demand among clients. However, the actual construction often outpaces the administrative processes, which has complicated its financing until now," said Veronika Jančová, director of the Housing and Business Loan Department at Česká spořitelna, at today’s seminar on financing the construction of prefabricated houses. Therefore, the bank has started to offer mortgages for financing wooden constructions without the necessity of securing them with another property.


Development of Prefabricated House Construction in the Czech Republic:

Year Number of New ADMD Constructions Total Number of New Prefabricated Houses (ADMD estimate) Number of New Family Houses Started (ČSÚ data)
2010 860 1500 16,611
2009 839 1300 18,750
2008 767 1200 22,918
2007 769 1200 20,990
2006 822 1000 20,620
2005 512 800 17,579

Source: Association of Suppliers of Prefabricated Houses and ČSÚ

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