Czech experts warn against damages caused by new construction law

07
Aug
2024
News - Czech experts warn against damages caused by new construction law #Czech Republic #report

by Property Forum | Report

The new construction law has taken effect in the Czech Republic since July 1, 2024, and the application problems are multiplying. One of the troublesome areas is digitised permitting management, reports Newstream.cz.


According to the Union of Towns and Municipalities (SMO), difficulties with the launch of the digitised permitting procedure could mean a slippage of 13,000 building permits worth CZK 100 billion (€40 billion), if the system can be put into working order by the beginning of September at the latest. According to František Lukl, Chairman at the Union, the digitisation was prepared poorly, the building authorities are overwhelmed with applications that were due by the end of June according to the old rules, and they are troubled by the long-term status quo.

The union warns against the collapse of the authorities and also against other damages that may result from the impossibility of drawing pre-negotiated subsidies. The union asked the Minister for Regional Development Ivan Bartoš (Pirates Party) to convene a meeting with the organisations affected by changes in digitisation, in the presence of Prime Minister Petr Fiala (ODS). 

According to the mayors, the problem is also the transfer of more complex construction procedures to municipalities with a shortage of officials. In addition, they do not have a detailed manual for working with the new system. 

According to the authorities and experts, problems with the new online system can lead to delays in construction procedures, financial losses and the bankruptcy of some designers. Even a month after its launch, the local authorities and applicants for building permits continue to have problems with its use. According to the ČTK (Czech Press Office) survey, the authorities are faced with errors and illogicalities in the system or missing elements compared to the original systems. 

According to the builders' chamber, due to problems with the system and changes to the construction law, perhaps up to thousands of designers will cease their active activities. According to experts, delays in proceedings increase the costs of builders and can prevent the payment of advances to designers. 

The Ministry for Regional Development stated in the previous days that it updates the new system every two weeks and resolves significant defects in a matter of days. However, the construction authorities have not yet noticed major changes in their functioning.




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  • 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.
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  • 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.
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