The new Building Act responds to the long-term unsustainable development of the housing market in the Czech Republic, where rapid increases in real estate prices are driven primarily by insufficient and slow housing construction. Drawing on the framework of the 2021 Building Act, the reform seeks to significantly simplify, accelerate, and clarify permitting procedures, strengthen the institutional capacity of building authorities, and create a predictable environment for investment in housing development.

Key takeaways:

• The Czech Republic is facing one of the most severe housing affordability crises in Europe, driven mainly by long-term insufficient and slow housing construction that fails to meet actual demand.
• The new Building Act addresses lengthy and complex permitting procedures by introducing the principle of “one authority, one procedure, one decision” and consolidating previously fragmented competences.
• The reform aims to create a predictable and efficient institutional environment that enables faster delivery of housing projects, supports investment in construction, and helps stabilise housing prices.

Policy Paper – Martin Zeman

The analysis is in PDF under the link below.