Housing Permits: 6 Weeks in Warsaw, 13 Years in Prague—What’s Wrong?

As housing costs in Prague continue to rise, policymakers are looking abroad for solutions.

Poland’s approach to residential development has emerged as a potential model, with significantly shorter approval processes and policies that encourage large-scale construction.

In Warsaw, developers can secure building permits in as little as six weeks, whereas in Prague, the process can take up to 13 years. Poland’s streamlined regulations and proactive government involvement have led to a substantial increase in housing supply, creating a competitive market that has kept property prices more affordable.

A key factor behind this success is the Lex Developer Law, which allows developers to build in restricted areas in exchange for investing in public infrastructure such as schools, nurseries, and transportation networks.

This policy has accelerated residential expansion while ensuring that new developments contribute to community needs.

The results are evident in Warsaw, where the housing market is thriving. Developers like the Czech Trigema led by Radek Menšík have praised Poland’s system for its efficiency and incentives.

According to project director Fialková, competition among developers is so intense that companies must actively attract buyers, keeping housing prices in check.

In contrast, the Czech real estate market remains plagued by bureaucratic delays and restrictive regulations. Apartment prices in Prague have soared, making homeownership increasingly unattainable for middle-class families.

While Warsaw’s housing remains within reach for a broader segment of the population, Prague’s slow approval process and regulatory obstacles continue to push prices higher.

Property prices in Czechia rose by 10.7% in 2023, sales up by 34%

Real estate prices in Czechia increased by an average of nearly 11 % in 2024, while property sales surged by 34%, and new developments saw a 51% rise, according to data from the Czech Banking Association and Flat Zone.

The market is rapidly returning to pre-crisis levels after a sharp downturn in 2022. Older apartment prices rose by 10% nationwide and 18% in Prague.

Would you like us to write about your business? Find out more