How long does it take to get a building permit?

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How long does it take to get a building permit?

One of the biggest obstacles to housing construction is the growing delay in issuing building permits. How long do companies have to wait for decisions in individual cities? What is preventing these decisions from being issued on time? The survey was conducted by the real estate website dompress.pl.

Mateusz Bromboszcz, Vice President of the Management Board for Legal and Administrative Affairs at Atal

Administrative difficulties have long weighed on the construction industry. Lengthy and unpredictable procedures related to the issuance of permits and decisions by government agencies, including building permits and occupancy permits, have a negative impact on the real estate sector and are the biggest barrier that developers have been facing for years.

The longest delays are currently in the issuance of building permits. Until recently, the waiting period was half a year; now, it can sometimes be as long as 15–18 months. Meanwhile, according to regulations, the waiting period for a building permit should not exceed 60 days.

From a real estate developer’s perspective, it is extremely important to ensure the smooth operation of administrative bodies and to digitize procedures. This is because administrative uncertainty directly affects the quality of the project and the costs of carrying out the development.

Andrzej Oślizło, CEO of Develia SA.

We currently operate in five major Polish cities and are actively looking to expand into another city whose authorities are supportive of investors and investments. Protracted administrative procedures are a problem the real estate development industry has been grappling with for years. The slowness of government agencies in making necessary decisions has been further exacerbated by pandemic restrictions and some recently introduced legal regulations. There are cities and government offices that handle these difficulties well, but unfortunately, there are also cases where officials in certain cities delay the issuance of permits. The biggest barrier for investors remains the lack of local zoning plans and the need to obtain a decision on building conditions. All of this means that the average time from the purchase of a plot to the start of construction is currently about two years. Purchasing a plot covered by a zoning plan does not guarantee that this period will be shortened.

We are currently seeking several building permits for development projects, the commencement of which is being thwarted by the complete inaction of officials and unwarranted protests by the owners of neighboring lots. The land in these cases is covered by the local zoning plan, and we are prepared to build access roads to these developments at our own expense, which would benefit current and future residents. For some reason, however, local authorities do not want us to relieve them of their obligation to build transportation infrastructure and are refusing to issue the necessary permits. The start of the project is also often delayed by neighbors who protest building permits that have already been issued. Under current regulations, protesters face no consequences if the project is found to comply with all applicable regulations. They protest simply because they can, and they are eager to exercise this right. Unless penalties are introduced for such deliberate, obstructive actions, this practice will certainly continue.

Dariusz Nagórski, Director of Investments at Aria Development

Since the start of the pandemic, government offices have adopted special procedures, meaning that all deadlines set by law have been suspended. Civil servants working remotely made it difficult to review documentation submitted for building permits. This led to longer processing times for decisions. The lack of in-person meetings and the practice of depositing documents in drop boxes without confirmation of submission caused disruptions and, in extreme cases, prevented decisions from being issued because some of the documents went missing.

Adrian Potoczek, Director of Sales and Marketing at Wawel Service

In Katowice and Kraków, the wait time for a building permit is the same. Before the pandemic, the wait was 4–5 months. Since the pandemic began, this time has significantly increased to 8–10 months, which makes it very difficult to start construction work on projects on schedule. The problem stems from the availability of officials responsible for issuing these decisions. These officials often work remotely or have limited working hours, which is why the process takes so long.

Mariola Żak, Director of Sales and Marketing at Aurec Home

Recently, the pandemic has been the cause of the most significant delays beyond our control. Deadlines were pushed back by as much as several months. Government offices switched to remote or hybrid work, making it impossible to visit an office without a prior appointment—and even that was sometimes difficult when office phones went unanswered. Fortunately, the epidemiological situation in the country is improving, so the problem is no longer as pressing as it was a few months ago.

Małgorzata Ostrowska, Director of the Marketing and Sales Division at J.W. Construction Holding SA.

This is a significant problem affecting developers, resulting in market supply falling short of demand—a situation that is not favorable for buyers. It also contributes to higher project development costs. Unfortunately, this situation is not caused solely by the pandemic. However, the pandemic has further prolonged this process.

Zuzanna Należyta, Sales Director at Eco Classic

Delays affect all administrative decisions. The most recent example is a two-year delay in processing a subdivision decision. This is the biggest obstacle to market development. Postponing an investment project by a year or two due to protracted procedures can determine the success or failure of a company’s business. Today, apartments aren’t designed to be sold tomorrow. Projects are “tailor-made” and adapted to current market needs, which are constantly changing.

Janusz Miller, Director of Sales and Marketing at Home Invest

Currently, in Warsaw, it takes anywhere from a few to over a dozen months to obtain a building permit, and in some cases, it takes significantly longer. Decisions are being issued with delays, mainly due to the pandemic. Of course, there are other factors contributing to this situation, such as whether a local zoning plan has been adopted for the area or whether one must apply for zoning conditions for the lot. Much also depends on the specific characteristics of the land itself and what exactly one intends to build on it. The district of Warsaw where the project will be carried out is also a significant factor.

Marcin Żurek, Director of Project Implementation at Nickel Development

The pandemic continues to be a hindrance to smooth operations. Most government offices and companies have still not returned to normal operations and are working under a hybrid system. Unfortunately, there are many indications that we will have to get used to operating this way. The multi-tiered structure of government offices, where employees are on-site or off-site on a rotating basis, hinders the efficient and rapid submission of documents for approval, which inevitably prolongs all processes. We must also remember that many of the planned projects, particularly those in suburban areas, are complex and require numerous additional approvals, permits, authorizations, opinions, and expert assessments. These include both those we prepare before applying for a building permit and those required of us by the authorities during the proceedings. These include, among other things, agreements related to the construction of road infrastructure and the provision of technical infrastructure for the sites, such as sewer systems, stormwater drainage systems, water supply systems, etc. Simply put, developers are faster at preparing projects than government agencies are at providing the necessary infrastructure.

Joanna Chojecka, Director of Sales and Marketing for Warsaw and Wrocław at Robyg SA.

Cities are not releasing land as they prepare and adopt zoning plans. There is a major problem with building permits, which used to take six months to obtain but now take as long as 18. Meanwhile, according to the regulations, it should only take 60 days. For developers, this second problem is even more acute. Until cities start preparing more zoning plans, apartment prices will continue to rise.

Andrzej Gutowski, Vice President and Sales Director at Ronson Development

Delays in issuing building permits are a consequence of the pandemic, which has significantly slowed down the process. Indeed, these delays are felt most acutely in Warsaw, which is the largest and most dynamic real estate market. There is a shortage of personnel, the law can be inconsistent, and on top of that, there are infrastructure-related issues, as infrastructure in many parts of Warsaw is underdeveloped. Recently, there have been cases where the process of obtaining a building permit took over a year. Fortunately, we have secured the necessary permits for some of the projects scheduled for this year. We strive to plan ahead and anticipate potential difficulties.

Sebastian Barandziak, CEO of Dekpol Deweloper

In theory, every government agency has 65 days to issue a building permit decision, regardless of the city, plus additional time to supplement the decision. We operate primarily in the Tri-City market. Our experience in this area shows that the waiting time for a building permit is generally within the specified timeframe.

Author: dompress.pl

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