More affordable housing requires faster permitting and modern construction methods

In October, I had the honor of discussing with Jiří Nouza, President of the Association of Construction Entrepreneurs; Jakub Dobrý, Director of CORWIN CZ; and Jiří Vančura, Director of Real Estate and Corporate Finance at Trinity Bank, what is currently hindering residential construction and what could help increase the supply of housing. Our meeting took place in Prague during the filming of the iDNES Lounge program, which focused on the future of the construction industry and housing affordability.
We thus examined the issues surrounding the future of the construction industry and housing affordability from the perspectives of a construction firm, a developer, a professional association, and a financing bank. For me, it was very enriching to hear from colleagues in other professions. Joint discussion and the integration of different professional perspectives and experiences can yield solutions that will also work in practice.

Personally, I consider the unpredictability and length of permitting processes to be one of the biggest obstacles. From an investor’s perspective, I was able to share a personal experience from one of our projects during the debate, where it took fifteen years to obtain a building permit. Throughout this entire period, capital remains tied up in the land, and the investor’s costs continue to rise. Yet speeding up the permitting process is not only in the interest of construction companies and developers. The state and local governments would also benefit, as completed projects generate additional revenue for them.

The state should strive to speed up the building permit process for its own gain, because it stands to profit from it.

We also discussed the redevelopment of brownfields, the labor shortage, and the need for automation. Using the example of the former Palace Hotel in Ostrava, I outlined our efforts to breathe new life into long-neglected parts of the city and create spaces accessible to the public. At the same time, in the construction industry, we must make greater use of prefabrication, robotization, and 3D concrete printing. New technologies will not replace humans in all activities, but they can help where there is a long-term labor shortage while also increasing the speed and efficiency of construction.

I also consider the ideas of my fellow speakers to be significant. Jakub Dobrý pointed out the unpredictable length of project preparation and the importance of high-quality public space in the redevelopment of brownfields. Jiří Vančura noted that lower planning costs do not automatically mean cheaper apartments—increasing supply and competition are the key factors. Jiří Nouza emphasized the need for a long-term agreement between investors and cities, as well as the fact that housing prices cannot be expected to stabilize without a greater supply.

I would like to thank the iDNES editorial team for the invitation and Jiří Nouza, Jakub Dobrý, and Jiří Vančura for an open and substantive discussion. I believe that it is precisely such meetings that help identify the real problems facing the industry and move their solutions forward.