Czech developers set aback by new permitting process hiccups

15
Oct
2024
News - Czech developers set aback by new permitting process hiccups #Czech Republic #report

by Property Forum | Report

The digital construction permitting procedure in the Czech Republic is not going to be fully functional in the foreseeable future. There is even the possibility of commissioning a completely new system, reports E15.cz.


This would mean the correction of the newly introduced Czech digital construction permitting procedure will be moved to the next election period. Meanwhile, investors and developers are already running out of the cushion of projects they created by applying for permits under the old construction law.

The report of IT experts from four ministries, based on which Prime Minister Petr Fiala dismissed the chairman of the Pirates, Minister for Regional Development and Deputy Prime Minister for Digitisation Ivan Bartoš, assumed that the repair of all functionalities would take between a year and a year and a half. Such a long deadline unpleasantly surprised real estate investors, but now Transport Minister Martin Kupka claims the deadline can be much longer. It should be clear after the meeting of the newly formed government on October 16, where the cabinet should decide whether it will prefer the gradual repair of Bartoš's system or the production of a new one.

Kupka's team is currently working on an analysis that his government colleagues should bring to the table during negotiations. The minister did not want to indicate which variant he prefers, whether it is a repair or the production of a new system. According to Kupka, the agile way of developing a digital system, i.e. continuous with the gradual addition and correction of individual functions, which Bartoš chose to save time, has its drawbacks. According to him, if it were to go the route of awarding a new public contract, it should be detailed in what the state requires from the system. According to the minister, the government must also communicate much more with users, i.e. construction officials in particular, to find out their expectations, which will now be a task, especially for the new Minister for Local Development, Petr Kulhánek (STAN).

In any case, the cabinet will try to push through the parliament by the beginning of December a legislative amendment that would allow construction authorities to temporarily use even the old systems. This should move the application process along until a more permanent solution is found.




New leases

  • Golden Star Estate has secured a long-term lease agreement with global technology solutions and consulting provider C&F for nearly 1,900 sqm of office space at the Konstruktorska Business Center. Following the transaction, the property, located in Warsaw’s Mokotów business district, is now almost fully leased. The Polish branch of C&F will officially relocate to the facility at the beginning of 2027.
  • Natland Group has committed to its long-term presence at Prague-based Rohan Business Center through a lease extension covering 2,004 sqm of office space, together with storage facilities and dedicated parking spaces, in a deal brokered by iO Partners.
  • Yareal Polska has expanded the commercial offering at its flagship SOHO mixed-use development in Warsaw’s Praga-Południe district, securing three new lease agreements totaling nearly 500 sqm of ground-floor retail space. The developer has strengthened its tenant roster by signing pet supplies retailer Maxi Zoo, ceramics workshop Alike Pottery Studio, and coffee distributor Unroasted.

New appointments

  • Indotek Group has announced the appointment of Diederik Bakker as Group Chief Investment Officer and Group Head of Asset Management. In his new role, the Dutch real estate investment professional will gradually assume responsibility for the company's ITAM (investment, transaction, and asset management) activities across 12 European countries, supporting the next phase of Indotek Group’s growth. His focus includes facilitating sound investment decisions across Europe and developing a group-level portfolio management strategy that combines local market knowledge with international asset management know-how.
  • Peakside Capital Advisors has appointed Bogi Gabrovic to advise the board and support its investment and acquisition activities in Poland. Gabrovic brings more than 25 years of CEE real estate experience to the role, having previously held senior executive positions at CTP, Golub & Company, and White Star Real Estate, where she managed transactions exceeding €2 billion.
  • Katarína Brydone, Jana Vlková and Vendula Maršová have been appointed as the first Equity Partners of Colliers’ Czech business. Brydone brings more than 20 years of experience in international real estate. Vlková has more than 25 years of experience in commercial real estate. Maršová, Partner and Head of Valuation and Advisory Services, brings more than 16 years of experience in real estate valuation and advisory.

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