The media constantly informs about the increase in the price of building materials, about the fact that construction is slowing down or becoming more expensive. Investments in real estate did not benefit from the pandemic and neither does the war in Ukraine. The main factors of the price increase are the price of raw materials, energy and PHM, labor and interest.
With an analysis of the current development of the construction industry, representatives appeared before journalists on 7/28/2022 the second largest Czech network of building materials company Pro-Doma. The prices of building materials, which became the main items of increase in price in March and April, are either stagnant or have gradually started to become cheaper. The rate of price reduction is not as fast as the rate of price increase, even so there has already been a noticeable drop in prices for iron and metallurgical products. Polystyrene and wood products are also slowly becoming cheaper – for example, at this time last year, the price of OSB boards rose sharply, and after a very significant decrease in the sales of manufacturers, there is a repeated discount – prices have fallen by more than 50% compared to last summer. The prices of iron, polystyrene and masonry increased the most. Iron reached its maximum in March of this year, while its price increased intensively already in the middle of last year. The price of CZK 15 per kg rose to CZK 25 per kg by the end of the year, but after the start of the war it rose to an incredible CZK 56/kg. But now, for two weeks, it drops to the limit of 30 CZK per kg.
The most common brick block with a thickness of 30 cm increased in price by 80% year-on-year, but the overall increase in the price of masonry is somewhere around 50%. Façade polystyrenes (EPS) went up in price from about 850 CZK to over 2,000 CZK, i.e. by more than 100%. PVC foil – 40%. Everything else is about 20-30%. A slight increase in prices can still be expected, especially for energy-intensive production. However, developments in the energy market, mortgage rates and the price of construction work have taken their toll. The construction of RD has basically stopped. Orders that have already started are being completed. Those who don’t have to, don’t build. This situation has spilled over into the sale of apartments, however, the price has not yet gone down and it is questionable whether it will. If a significant number of apartments do not enter the market from people who will not be able to pay their mortgages, the price cannot be expected to fall due to the construction costs. And those who want to build a house in the future will mainly focus on higher quality and more expensive materials – masonry, insulation, windows, doors and on the energy self-sufficiency of the house. Year-on-year growth in units of up to 5% is expected, neither a major price increase nor a price drop.