Construction Costs Are Not to Blame for Expensive Homes, Says Hochtief Chief

Construction costs account for only a small portion of what buyers ultimately pay for housing, according to Tomáš Koranda, chairman of the board at Hochtief Czech Republic. He argues that the reasons for escalating housing prices lie elsewhere.

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Construction costs are only a fraction of what buyers pay for housing.

Koranda highlighted that while construction expenses are a mere fraction of the total cost, other factors are driving up prices. The Czech Republic has ambitious construction plans, but their realization faces hurdles. These include a growing scarcity of essential materials like common building stone and a shortage of skilled labor.

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We need to look for other reasons behind the price increases.

While sourcing building stone from more distant quarries is feasible, Koranda noted that importing qualified employees from abroad presents a much greater challenge for one of the country's largest construction firms. This labor deficit could impede the fulfillment of the nation's extensive building objectives.

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While stone can be brought from more distant quarries, quality employees cannot be easily imported from abroad.