New Czech Building Act becomes valid with struggles

04
Jul
2024
News - New Czech Building Act becomes valid with struggles #Czech Republic #report

by Property Forum | Report

Construction management in the Czech Republic is entering a new, digital era. The long-awaited change has not been easy. Having not enough time to get acquainted with the new regulations and digital systems, both sides, building authorities and builders are struggling, reports E15.cz.


From Monday 1 July, builders no longer have to go to the office with stacks of papers for dozens of stamps. The new Building Act valid in the Czech Republic allows them to do everything at home or from the office online on the Builder's Portal. Some builders were even so worried about Monday's entry into force of the new construction law that they overwhelmed the authorities with applications for permits still under the old rules by the end of June.

"The situation at some building authorities is difficult," admitted Ivan Bartoš, Minister for Regional Development. "There are several reasons for the current onslaught. One of them is that there will be an increase in fees for some categories of buildings. That's why some want to get an even lower rate," the minister believes. „It happened exactly what we have been pointing out for many months. The building authorities were overwhelmed with applications for building permits, including those hastily put together with many shortcomings," said Radomír Nepil, Prague 8 Deputy Mayor. "Submissions have increased by 40 per cent at the building office of Prague 8," added Nepil, who blames Bartoš for poor preparations. According to him, the officials did not have the opportunity to properly familiarise themselves with the new system. 

The new Building Act should speed up the entire permit procedure. Thanks to digitisation, all permits, statements and documentation will be available online. All concerned authorities and builders will communicate in a unified system. Deadlines are also supposed to help speed up. For example, a family house should receive a decision within 30 days, for more complex buildings, officials will have twice as much time. If authorities do not make a decision in time, construction will be permitted automatically. However, extended deadlines will apply until the end of this year.
 




New leases

  • UDH, one of Poland’s largest distributors of premium imported beers, has leased approximately 1,400 sq m of modern warehouse and office space at the Park Rysy Kraków distribution centre. The tenant, which has chosen to expand its operations in southern Poland, was once again represented by AXI IMMO.
  • 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.

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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