Construction generation in July recorded a 2.7% 12 months-on-12 months decline. This occurred immediately after a yr and a quarter of described advancement. Generation in the development sector reduced by 2.1%. Development engineering manufacturing fell by 4 percent, thus worsening the all round effects in the development business.
In July, the developing authorities issued 6,936 creating permits. This was 9.2 per cent considerably less than a 12 months before. The indicative worth of the recently licensed buildings even dropped by 61% to 34.6 billion crowns. The amount of initiated residences lessened by 28.6% year-on-yr and the amount of completed residences lessened by 6% year-on-12 months.
From the above facts it is very clear that there is a slowdown in the construction sector, which is responding to the enhance in the prices of performs and construction elements. At the exact same time, the desire in the true estate market place is cooling down, which potential customers to the fact that the sale of genuine estate is getting much more and a lot more hard. A single explanation is pricey home loans, which do not allow for additional expansion in home rates. Just lately, costs on the housing market place are starting up to stagnate or even drop slightly.
The creator is main economist at BH Securities
(Edited editorial)
