Struggling permitting process damages Czech economy

11
Aug
2025
News - Struggling permitting process damages Czech economy #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.
 




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.

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