How will it be possible to issue a building permit in the Czech Republic under the new law?
The Czech real estate market is limited in supply, one of the reasons for which is the complexity of the procedure of documentation to start construction. Understanding the problem, the government has announced a law according to which all necessary papers will be collected in one electronic system. The authors of the innovation hope that now it will be much easier and faster to obtain a construction permit.
The law will allow reducing the period of preparation for the beginning of works, as well as reduce risks for investors and engineers. Now it will be possible to execute the necessary documentation online. Besides, on the specialized portal you can see how the process of registration is going, the terms of obtaining permits. The electronic database will contain all the necessary information on this or that project, and the developer can keep a diary of works. In the project, the authors of the law have created a land planning portal, where each object has its own identification number, which will allow tracking all stages of the building construction – from obtaining permits to its operation and demolition.
The draft law was approved by the Czech Ministry of Local Development. According to officials, this system can be implemented through subsidies from the European Union. It is planned to launch the portal by 2023.
The document is currently under consideration by the Senate, but the authors believe that it will be adopted soon.
The Czech Republic is one of the countries where it is difficult to obtain a building permit. The procedure involves the collection of 21 documents, which on average takes about 246 days.
The World Bank conducted a study, where it analyzed the process of starting work in the real estate market of different countries. The Czech Republic was included in the list of countries where all the necessary permits are most difficult to obtain, it took 157th position out of 190 on how easy it is to get “good” for construction.
In addition to the volume of documentation and the time to collect it, the analysts took into account the costs needed to issue permits and control the construction process itself. In this list Germany holds 30th position, Poland 39th and Austria 49th. Close to the Czech Republic were such countries as Honduras, Kosovo, Barbados and Argentina.
The easiest way to obtain a building permit is in Hong Kong. Here you need only 8 documents, which can be obtained in 69 days. For EU countries, the average procedure is 152 days, during which the developer receives 12 papers.
The problem in the real estate market of the Czech Republic has been known for a long time. The complexity of obtaining a permit limits the supply and increases the cost of objects. It should be noted that the situation in the regions is not as critical as in Prague, where the start of construction has to wait for years. Experts say that this picture will remain until 2021. After that it should improve – a new building law will come into force.