News Article CEEC Research Central Group construction Czech Republic economy permitting process report

by Property Forum | Report

Digitalisation of the construction permitting process has proven to be a significant obstacle to the development of cities and municipalities, according to the recent CEEC Research survey. In practice, it is still not working as expected. On a scale from 0 (completely non-functional) to 10 (fully functional), city representatives have given the system an average score of 3.40.


After last year's unsuccessful launch of the digital construction permitting process management, a so-called "bypass" solution was incorporated into the system - a provisional connection of new and old processes. However, this approach did not solve the problems either, as shown by the results of an electronic questionnaire that addressed 961 respondents from local authority councils.

According to 43% of respondents, the current form of digital management causes minor delays and complications. According to 22% of city and municipality representatives, it significantly delays key projects and hinders territorial development. 10% of respondents do not notice any significant problems, and 11% managed to get around the technical problems. The establishment of a hybrid regime, which combines paper and digital forms of management, is perceived as positive. A third of respondents (32%) consider it beneficial and necessary.

“The survey results show that the launch of the new construction law and the related digitalisation have been very unsuccessful. And this is damaging the economy, hindering the development of the country and only further deepening the housing crisis. Everyone loses – the state is losing tens of billions in taxes, it is fundamentally complicating the business of companies, and it is making housing more expensive for people,” said Dušan Kunovský, Chairman of the Board of Directors of Central Group.

Officials consider a clear step-by-step methodology to be the most needed form of support (61%), followed by practical training (44%). The request for the possibility of testing the system in detail or strengthening personnel capacities is also more common. "The survey also showed that the difficulties are not limited to selected phases of the permitting procedure, but affect the entire process. All management processes are affected equally," added Michal Vacek, Director of CEEC Research.