Money Buzz! Europa

Category: Prague

  • Construction output in Czechia decreased by 4.6% in April 2020

    Construction output in Czechia decreased by 4.6% in April 2020

    In April 2020, the construction output in Czechia decreased by 4.6%, year-on-year (y-o-y), in real terms, latest CZSO data show.

    The seasonally adjusted construction output decreased by 1.9%, month-on-month (m-o-m). The planning and building control authorities granted by 4.9% less building permits, y-o-y.

    The approximate value of permitted constructions decreased by 0.6%, y-o-y. The number of started dwellings increased by 1.5%, y-o-y. The number of completed dwellings decreased by 32.5%, y-o-y.

    In April 2020, the construction output decreased by 1.9%, m-o-m, in real terms. In the year-on-year comparison, it decreased by 4.6%.

    Compared to the corresponding month of the previous year, the production in building construction decreased by 10.5% contribution. The production of civil engineering construction increased by 13.5%, y-o-y.

    The average registered number of employees in construction decreased by 1.9%, y-o-y, in April 2020. Their average gross monthly nominal wage increased by 2.3%, y-o-y, in April 2020.

    In April 2020, the planning and building control authorities granted 7 012 building permits; it was 4.9% down, y-o-y. The approximate value of the permitted constructions was CZK 34.6 billion and compared to the corresponding period of 2019 it decreased by 0.6%. 

    Number of dwellings started increased by 1.5%

    The number of dwellings started increased in April 2020 by 1.5%, y-o-y, and reached the number of 3.386 dwellings. The number of dwellings started in family houses increased by 6.3%.

    The number of dwellings started in multi-dwelling buildings increased by 5.4%. A decrease in the number of dwellings started occurred in other categories, mainly in modifications to existing family houses and multi-dwelling buildings.

    The number of completed dwellings decreased by 32.5%, y-o-y, in April 2020 and amounted to 1 837 dwellings.

    The number of completed dwellings in family houses decreased by 30.2%; the number of completed dwellings in multi-dwelling buildings decreased by 43.4%.

  • Non-cash transactions increase in Czechia

    Non-cash transactions increase in Czechia

    The increase in non-cash transactions in Czechia even after the coronavirus lockdown is visible in virtually all fields, latest O2 eKasa data show.

    For glass, painting and painting works, the proportion of non-cash payments increased from 12% to 33%, for activities for personal and physical well-being (e.g. fitness centers, massages, therapies) from 12% to 25%, for roofing works from 3% to 15%.

    In the hospitality industry from 9% to 20%, for hairdressing, cosmetics and similar activities from 8% to 17%, and for electrical installations from 3% to 12%.

    Overall, three quarters of businesses resumed their economic activity in the 11 weeks since the crisis began, with the value of all transactions falling by 18% compared to the pre-crisis period.

    The volume of all transactions therefore reaches 82 % of the original level. In practice, this means that customers buy less often, but they give more money for each purchase than before quarantine.

    As a result, the value of cash register sales has increased by 10% for open businesses.

    Almost half of restaurants and hotels are still closed

    The accommodation, catering and hospitality sectors experienced the deepest decline.

    O2 eKasa data show that more than half of enterprises (55%) has already started to work in this segment.

    Wholesale, retail or manufacturing are already at 90% of output compared to the pre-crisis period. The number of transactions via EET decreased by only 23 % despite the abolition of the fiscal obligation.

  • Impact Hub Prague, new program focused on sustainable food production

    Impact Hub Prague, new program focused on sustainable food production

    Impact Hub Prague, in cooperation with several partners, launches the first program in the Czech Republic focused on sustainable food production.

    Future of Food is a 3-month program that offers support to all who are producing innovative and sustainable production.

    Professional mentoring, professional consultations, training workshops and discussion meetings with food experts are prepared for participants.

    Participants will meet interesting personalities from the field of sustainable food such as Martin Ducháček, owner of Freshbedýnek, Otto Jiránek, CEO of Country Life, Martin Jahoda, CEO of EMCO and Kamil Demuth, founder of the scuk.cz platform.

    Financial support of at least EUR 100 billion for the transition to more sustainable agriculture from the European Commission

    In the recently published “From Farmer to Consumer” strategy, part of the new Green Agreement for Europe, the European Commission outlined a financial support of at least EUR 100 billion for the transition to more sustainable agriculture.

    According to the strategy, €10 billion is to be used for the bio-economy and food, with a key area of research being “increasing the availability and resources of alternative proteins such as plant, cultured or marine and insect-based proteins and other meat substitutes.”

    The Commission states that livestock farming is a major contributor to climate change, causing almost 70% of all greenhouse gas emissions in Europe.

    However, excessive consumption of animal products also has a health impact on society as a whole, which entails considerable costs for health care.

    In 2017, an estimated more than 950 000 deaths in the EU were linked to unhealthy eating.

  • Average wage increased by 1.4% in Czechia in Q1 2020

    Average wage increased by 1.4% in Czechia in Q1 2020

    • In the Q1 2020, the average gross monthly nominal wage per full-time equivalent employee in the national economy increased by 5.0% compared to the corresponding period of the previous year.
    • In real terms, it grew by 1.4%. The median wage was CZK 29.333.

    In the Q1 2020, the average gross monthly nominal wage per full-time equivalent employee in the national economy was CZK 34.077, which is by CZK 1 610 (5.0%) more than in the corresponding period of 2019.

    In the aforementioned period of 2020, consumer prices grew by 3.6% and thus wages increased by 1.4% in real terms. The wage volume grew by 4.1% and the number of employees decreased by 0.9%.

    Compared to the previous quarter, the seasonally adjusted average wage in the Q1 2020 increased by 1.1%.

    The median wage was CZK 29.333 and increased by 5.8% compared to the corresponding period of the previous year.

    The male median wage reached CZK 31.790 and the female one was CZK 26.723. Eighty per cent of employees earned wages within the interval from CZK 15.761 to CZK 53.850.

  • First phase of the Beroun Gate project is completed

    First phase of the Beroun Gate project is completed

    The first phase of the transformation of the five-hectare area of the former military outlet near the center of Beroun into a residential zone is complete.

    Studio Ian Bryan Architects (IBA) says that the unpretentious black-and-white design of the buildings, inspired by the geological structure of the rocks around Beroun, is so simple deliberately.

    The prices of real estate around the capital are generally lower than in Prague and because the design was done without the combined details, the construction work was not unnecessarily expensive.

    Thus, IBA managed to build a high-quality architecture with a high standard at an affordable price.

    The new residential district will eventually offer a total of 24,100 m2 of diverse housing. In total, there will be ten residential buildings.

    The developer, Crestyl, started construction works, which began in the summer of 2017 and will end this summer.

  • Czechia: Unemployment rate reached 2.3% in April 2020

    Czechia: Unemployment rate reached 2.3% in April 2020

    The general unemployment rate of the aged 15–64 years, seasonally adjusted, reached 2.3% in April 2020 and increased by 0.2%, year-on-year, latest Czech Statistical Office data shows.

    The male unemployment rate, seasonally adjusted, attained 2.0%; the female unemployment rate reached 2.6%.

    The employment rate of the aged 15–64 years, seasonally adjusted, reached 75.2% in April 2020 and slightly increased compared to that in April 2019.

    The male employment rate was 82.3%; the female employment rate was 67.8%, both seasonally adjusted.

    The employment rate of persons aged 15–29 years, seasonally adjusted, was 44.9%, in the age group 30–49 years it attained 87.7%, and in the age group 50–64 years it got to 76.3%.

  • 80% of Czech start-ups plan to expand abroad

    80% of Czech start-ups plan to expand abroad

    Nearly 80% of Czech start-ups plan to expand abroad, the most recent Startup Report from the Keiretsu Forum and CzechInvest’s experience show.

    Only 22% of Czech start-ups are not (yet) considering such an expansion.

    This is apparent from the responses of 150 start-up entrepreneurs who contributed to the formulation of the comprehensive Startup Report 2019/2020.

    A similar trend is indicated by statistics from CzechInvest, which has been focusing on support for start-ups since 2011. “More than 70% of the start-ups we have supported within our programmes have also travelled abroad with us,” says Markéta Přenosilová, head of CzechInvest’s Start-up and Innovative SME Division.

    For the absolute majority of Czech start-ups, the Czech Republic is the primary place of business. At the same time, however, there is a growing number of expanding start-ups – 30% of them are doing business outside of the Czech Republic. In the past, the percentage of start-ups operating beyond the CEE region was in single digits.

    According to the Startup Report, the largest number of start-ups head to Europe, then to North America or Asia.

    CzechInvest sent the most young innovative companies to Silicon Valley, New York, London and Lisbon.

  • TPCA factory in Kolin, Czechia, resumed production

    TPCA factory in Kolin, Czechia, resumed production

    Toyota Peugeot Citroën Automobile (TPCA) factory in Kolin, Czech Republic, has resumed production of the Toyota Aygo, Peugeot 108 and Citröen C1.

    TPCA, a joint venture between Toyota and PSA, stopped production on March 19.

    Prior to the decision to resume production at TPCA, a feasibility study was carried out, which assessed several factors. From the beginning, its main objective was to ensure the safety of all employees, suppliers and visitors. A wide range of occupational safety and health measures has been put in place.

    These measures were confirmed with representatives of trade unions and also the mayor of Kolín, who personally visited the factory on Friday, May 22, and was convinced of all the measures implemented by TPCA.

    During the shutdown, construction, design work and the installation of new equipment for the future production of the Toyota Yaris hybrid car, which TPCA announced in January this year, continued.

  • Hyundai will start production of the new i30 model in Czechia

    Hyundai will start production of the new i30 model in Czechia

    Hyundai will start production of the new Hyundai i30 model on Monday, May 25, in Nošovice factory, CTK shows.

    The car will have a new design, advanced connectivity features and 48V mild hybrid versions for higher efficiency.

    Nošovice is the only Hyundai plant in the European Union and is considered one of the most modern car manufacturers in Europe.

    The production capacity of the plant is 300.000 vehicles per year. The car manufacturer was followed by several subcontractors to the region and created almost 12,000 jobs. Hyundai Nošovice is the largest foreign investment in the Czech Republic.

    Due to coronavirus pandemic, production in Nošovice was interrupted on Saturday, March 21 and resumed on April 14.

  • Czech Post is returning to normal operations from May 25

    Czech Post is returning to normal operations from May 25

    From Monday, May 25, 2020, all branches of Česká Pošta will return to normal operating hours that applied before measures against the spread of coronavirus. 

    Most post offices have been operating normal since May 4, excepting post offices forming the so-called critical infrastructure of the state, which had limited operating hours until 4 PM from Monday to Friday and on Saturday until 12:00 or 1 PM. 

    Another exception were Prague 1 and Brno 2 post offices, which were open to the public from Monday to Friday until 6 PM and on Saturdays until 12:00 or 1 PM. So far, all post offices have been closed on Sundays.

    With effect from 25 May 2020, all Czech Post offices are returning to their standard hours for public, including Sunday operations. Also, the time period for serving clients over the age of 65 (or holders of a ZTP – P card over the age of 50 or workers in care services) is also abolished.

  • Benson Oak Capital sold online broker Klikpojisteni.cz (Klik)

    Benson Oak Capital sold online broker Klikpojisteni.cz (Klik)

    Benson Oak Capital announced that its private equity arm and co-investors have sold 100% of their stake in Klikpojisteni.cz (Klik) to a company majority owned by TA Associates, a private equity firm, and minority owned by MCI EuroVentures, a technology investment fund.

    Klikpojisteni.cz operates a leading online insurance brokerage in the Czech Republic and Slovakia under domain names Klik.cz and Klik.sk, with offices in Prague, Usti nad Labem and Bratislava.

    It offers clients the ability to transparently compare prices for non-life and life insurance products, including MTPL, CASCO, home, travel and term life insurance.

    The company will continue to operate as a wholly-owned subsidiary under the Klik brand and under the leadership of its original founder Andrew Fuchs and management team, including Aleš Rothbarth and Lukaš Pikal.

    Buyer also owns two leading Hungarian online insurance brokerages

    The buyer also owns Netrisk, which operates Netrisk.hu and Biztositas.hu, two leading Hungarian online insurance brokerages.

    Benson Oak and other investors funded Klik from its inception in 2011, and supported the company with multiple rounds of investment.

    Major broker shareholders will become minority shareholders in the combined group.

  • Covid-19 impacted rental market in Czechia. Rent fell by 20-30 percent

    Covid-19 impacted rental market in Czechia. Rent fell by 20-30 percent

    • Thousands of flats in the Czech Republic remained empty. Short-term housing fell to zero overnight. 
    • The Czech rental market was flooded with apartments for long and medium-term rent. 
    • Rent in Prague and Brno fell by 20-30 percent.

    Michal Rambousek, the founder of www.tvujspravce.cz, which takes care for the owners of their rental apartments, comments on the situation: “Expats left the country because of the coronavirus crisis, especially Ukrainians, Slovaks, Poles and other foreigners who came here for work. Foreign students and especially tourists left, bringing over 5.000 vacant flats for rent to the real estate market.”

    The coronavirus also waved rental prices. Some tenants have arranged a temporary discount on rent, others have left the apartments for various reasons. 

    How the rental market in Czechia was affected by coronavirus

    Due to the outflow of tourists and expats, a large number of apartments offering lower rents appeared on the market. The market price of rent in Prague and Brno also fell by 20-30 percent. 

    The average rental price for an apartment of 60 m2 in a better location in Prague is around CZK 20,000.

    The largest decline in rents was recorded in Prague 1 and 2. It was here that most flats were vacated. These were mainly apartments for short-term rent. 

    From the beginning of March to May 11, 5.458 vacant apartments for rent appeared on various internet servers in Prague alone (data do not include offers for rent from all servers, from Facebook groups, from booking or from Airbnb).

    Some owners of these apartments are now looking for long-term tenants, trying to cover the losses and ensure a regular income from long-term lease.