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.




Latest news


New leases

  • The global fintech group - Capital.com - has extended its lease agreement for 3,000 sqm of office space in the Skyliner office building in Warsaw until 2032. Over the past 12 months, lease extension agreements for a total of nearly 12,000 sqm have been signed in the building.
  • REHAU, a global manufacturer of advanced polymer solutions, has signed a lease for approximately 4,100 sqm of space at MLP Business Park Poznań. The new facility will integrate warehouse operations with modern office space and a dedicated showroom for product presentations, corporate meetings, and technical training.
  • RecuNova has leased 305 sqm in the Bucharest-based Olympia Tower office building for a new medical clinic. The lease deal was brokered by Activ Property Services.

New appointments

  • Romanian office developer Genesis Property has appointed Cătălin Niculiță as Leasing Manager. With nearly 20 years of experience in the real estate industry, he has held leadership roles at real estate companies such as Atenor, collaborating with major office tenants in the banking, telecom, and IT sectors.
  • Krzysztof Wróblewski (MRICS) has been named Head of Portfolio Management CEE at Peakside Capital Advisors, responsible for overseeing investments and managing the real estate portfolio. He succeeds Christopher Smith in this role.
  • Garbe Industrial is reorganising its senior leadership team. CEO Christopher Garbe will now focus on strategic orientation and international activities. Jan Philipp Daun assumes leadership of the Development division alongside his existing Investment and Joint Venture responsibilities. Andrea Agrusow expands her remit to include Portfolio Management while retaining control of Commercial and Real Estate Management. Additionally, Michael Marcinek and Maik Zeranski will now jointly head the restructured Development unit as Management Board Members, succeeding Adrian Zellner.


Latest news

News - Hotels move closer to the mainstream of real estate investment
09
Mar
2026

Hotels move closer to the mainstream of real estate investment

by Property Forum
Hotels are attracting growing interest from investors across CEE as strong operating performance and rising travel demand improve the sector’s fundamentals. At the same time, liquidity in prime markets and the emergence of new buyer groups are reshaping how hospitality fits within broader real estate portfolios. In an interview with Property Forum, Jakub Stanislav, Head of Investment Properties and Head of CEE Hotels at CBRE Czech Republic, discusses the outlook for hotel investment in 2026, the role of local capital in major transactions and which markets are likely to attract the most attention from investors.
Read more >
News - Royal Town kicks off new phase of resi project in Iași
09
Mar
2026

Royal Town kicks off new phase of resi project in Iași

by Property Forum
Royal Town, the residential project in Iași, has announced a new development phase, with construction of the 12th building set to begin in April 2026.
Read more >
News - ZDR Investments snaps retail projects in Austria
09
Mar
2026

ZDR Investments snaps retail projects in Austria

by Property Forum
Czech investment company ZDR Investments has completed two acquisitions on the Austrian market for its qualified investor fund Zdr Fki. The company acquired the PRO shopping centre in Linz's Urfahr district and Amstetten West retail park in the Mostviertel region for a combined value of €50 million.
Read more >


Property Forum ABOUT US

Property Forum is a leading event hub in the CEE real estate industry with over 10 years of experience. We organise conferences, business breakfasts and workshops focused on real estate, in London, Vienna, Warsaw, Budapest, Bucharest, Bratislava, Prague, Zagreb and Sofia, amongst other locations.
Please send press releases to
newsdesk AT property-forum DOT eu
MORE >

CONTACT

NEWSLETTER

 

Property Forum © 2017 – 2026 | Terms & conditions | Privacy policy