Nearly 100,000 construction permit requests submitted in 2018

NALED’s Property and Urbanism Alliance Annual Report on Construction Permit Issuance in Serbia 2018

Local governments processed nearly 100.000 construction permit requests during the last year, of which 85% were resolved positively. An analysis delivered by NALED’s Property and Urbanism Alliance has shown that the most successful cities in issuing construction, usage and other permits were Cacak, Sremska Mitrovica and Sombor and among municipalities Odzaci, Sopot and Backa Topola. The analysis was based on data from the system for submitting electronic applications in the Serbian Business Registers Agency.

The performance was measured by taking into account the number of resolved and positively resolved cases. Data shows that most of them managed to comply with legal deadlines and responded positively to requests. Also, there are those who lag behind the average, and are at the bottom of the list such as city of Belgrade, Novi Pazar and Nis and municipalitiy of New Belgrade, Cukarica and Zemun, with a high percentage of declined requests.

- NALED, being a participant in both the drafting process of the Law on Planning and Construction and development of the Software for Electronic Construction Permits, organized trainings for 5,000 public servants in the past two years in cooperation with the Ministry of Construction Transport and Infrastructure. In order to continue our support, on March 28, we will organize an info day for all municipalities that encounter problems in implementing a unified procedure and want to catch up with the best municipalities - says NALED's President of the Property and Urbanism Alliance Gojko Vrcelj.

When considering the efficiency of issuing permits in 2018, the most efficient municipality was Novi Knezevac issuing the document in one working day on average, while Cacak and Kikinda were issuing in three days. On the other hand, Belgrade and Novi Sad ranked as the most delaying among cities in issuing construction permits, with an average of 27 or 25 working days, while it took Bela Crkva municipality almost twice as much.

These data also contribute in creating the weaker result and breaking legal deadlines considering the national average. According to the law, deadline for issuing local condition is 25 days issuing, while the average on the national level is 28 days.There is a five-day deadline for obtaining a construction permit, while the republic average is eight days. The average of issuing usage permit is seven days, although the law provides five days.

The efficiency of issuing construction permits is one of the 10 categories measured by the Doing Business Report of the World Bank, while the success of ranking of countries depends on business conditions in the capital cities. On the 2019 list, Serbia’s position declined in this category, and dropped down from 10th to 11th place in the world. Although it continues to be a remarkable result, there is a possibility for further declining in the next report, which is why Belgrade needs support in improving its processes and procedures.

Property and Urbanism Alliance priorities in 2019

The annual report on issuing construction permits in Serbia was presented on the meeting of NALED’s Property and Urbanism Alliance. On this occasion, a report on key results and activities of the Alliance in the past year was adopted, among which some are pointed out, like involvement in the cadaster reform and initiation of the eCounter for immovable property registration and improvement of a number of systemic laws, including bankruptcy, companies, planning and construction, fees, pledge law, property taxes, tax procedure, etc.

Following members’ decision, in 2019, the Alliance will focus on further cadastral reform in the area of simplifying tax forms, as well as improving the process of electricity connection and contract implementation, which are the areas measured by the Doing business list where currently Serbia lags behind. Also, the aim is to improve the procedures of land consolidation, restitution, conversion and expropriation.