Building Permit Boom: Lots of Applications Before New Requirements Go into Effect Business



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According to data from construction permits and the state supervision information system for construction “Infostatyba”, from November 1, 2020 to December 31, 2020, a total of 14010 applications for the issuance of permits were submitted of construction. For comparison, during the same period of the previous year, that is, from November 1, 2019 to December 31, 2019, 6,211 requests of this type were sent to Infostatyba.

Most of the applications are for individual houses.

The highest number of applications in the last two months of last year was for the construction of one-bedroom houses: 8,861 (2,602 applications in the same period of 2019).

1,870 applications were submitted for the construction of two-apartment houses in November-December last year (384 applications for the same period in 2019).

The number of applications for permits for apartment buildings has also increased. During the last months of 2020, Infostatybija submitted 241 applications for the issuance of SLD for the construction of houses of three and several apartments (72 applications for the same period in 2019).

According to Infostatyba, Vilnius alone. The municipal administration has received 700 applications for construction permits in the first half of December 2020 and 830 throughout November. On average, around 770 such requests were sent to the Vilnius city municipality in a month before this period.

Photo by Lukas Balandus / 15min / Electronic system for building permits

Photo by Lukas Balandis / 15min / Electronic system for building permits “Infostatyba”

Diana Dambrauskienė, Public Relations Representative of the State Inspectorate for Spatial Planning and Construction (VTPSI) 15 minutes He clarified that in these statistics – only applications for building permits for new buildings.

“These figures reflect only SLD requests for new building construction (including new submissions), requests for SLD building reconstructions, major repairs, and so on. not included in these figures, ”he said.

However, experts unanimously agree that such a jump in applications and the siege of Infostatybos was due to requirements that went into effect earlier in the year.

Rushed to 2021

Mindaugas Statulevičius, President of the Lithuanian Real Estate Development Association (LNTPA), pointed out that the obligation to design class A ++ buildings arises from the date of submission of the application in the Infostatybos system. For this reason, many of those planning to build more A + energy class buildings were in a rush to “capture” this possibility.

“Some designers and builders fear the possible increase in costs due to the A ++ class, so they wanted to take out insurance. The same we observed in 2016, when we went from a fairly low step of energy class B to a very higher ”, he commented.

Photo by Sigismund Gedvila / 15min / Mindaugas Statulevičius

Photo by Sigismund Gedvila / 15min / Mindaugas Statulevičius

It is true that, according to M. Statulevičius, then the changes were much more difficult to manage and the preparation in the market was worse. As a result, the period of energy class B was extended by 10 months and some regulatory requirements for the design of class A were revised.

“It was not planned to do this this year, because the changes in the transition from A + to A ++ are not that cardinal and the preparation period was long enough. However, some designers and individual investors or builders wanted to make sure, for what hastened their plans to apply from 2020. I think it will respond to the first quarter of 2021. the number of construction permits and we will see a really calmer period ”, he is convinced.

Criticism of VTPSI

It is true that M. Statulevičius did not spare VTPSI’s criticism and assured that the inspection systems were not prepared for such an influx. In December, reports were received that the Infostatyba system was not working and that it had taken at least a few days to repair. In fact, the VTPSI itself twice in December reported technical failures in the information system.

“As a result, employees in the municipal planning and construction departments, who cannot collect data, have complained a lot. I think that market behavior was predictable. VTPSI must prepare its systems for that instantaneous traffic in the future, as this can be repeated for other reasons. For example, urgent technical construction regulations and legal provisions “, the LNTPA holder is convinced.

Sigismund Gedvila / 15min photo / Warehouse construction work

Sigismund Gedvila / 15min photo / Warehouse construction work

According to M. Statulevičius, such technical disturbances caused a lot of inconvenience in the market: we had to wait in line, there was still the possibility of not sending the data on time.

It is also likely that some of the projects were submitted somewhat rejected, just because of the term “fix”. The review can then be submitted, which will also be a burden on municipal staff. This is likely to lead to a prolonged period for project verification, ”he said.

There are other reasons for the increase in requests

Meanwhile, Dalius Gedvilas, president of the Lithuanian Builders Association (LSA), assumes that the jump in applications for building permits may have been caused by a new project implementation scheme in the market. Increasingly, the essence is said to be in the builder’s contract, when the person who buys the apartment becomes its builder and the company becomes a subcontractor.

About such practices 15 minutes wrote in the early 2020s.

READ MORE: Vilnius was surprised by the presented contract: offers to buy an apartment instead of an apartment

According to D. Gedvilas, in this way the builder “removes” the responsibility and transfers it to the person who bought the house. Each of these “builders” (person who has bought a house) receives a new building permit and there may be several dozen of them in an apartment building.

LSA nuotr./Dalius Gedvilas

LSA nuotr./Dalius Gedvilas

The LSA recommends asking, for example, if many building permits have been issued at the same address.

“Before, when an apartment building was built, there was a builder, that is, the legal entity that develops the project, and now there can be as many apartments as there are apartments in the apartment building.” 15 minutes commented D. Gedvilas.

He also considered that the jump in building permits could be due to subsidies for the installation of solar cells in buildings.

“If the building permit is issued in 2021, the builder will no longer be able to use the subsidy, so he was in a hurry to do so in 2020,” said D. Gedvilas.

Prices can go up 5-10 percent.

And what is special about that A ++ class? According to D. Gedvilas, in a building that meets such requirements, at least 50 percent. the energy consumed must be produced using renewable energy sources.

“This will create an inescapable need for the market to invest in solutions such as solar panels, heat pumps, wind farms, hydro turbines, biofuels and geothermal energy. Renewable energy sources must be identified at the design stage, and this will be achieved through the application of Building Information Modeling (BIM) in the design and construction process, ”explained the LSA manager.

In addition, according to D. Gedvilas, it will be necessary to invest in building heating and ventilation systems, there will be higher requirements for the thermal properties of external partitions. The biggest challenge are reclaimers, which have a high price and limited supply.

Photo from 123RF.com/Energy class

Photo from 123RF.com/Energy class

It is true that according to the LSA manager, the requirements of A ++ are more stringent than A +, but not as important as in the transition of the energy class from building B to A.

“It is more expensive to build a higher energy class building than lower energy class buildings. However, the benefits of sustainable buildings are much greater and the need for them is increasing, as high-energy homes are much cheaper to operate than in the lower classes.

For example, according to the Construction Production Certification Center (SPSC), the energy consumption of one- and two-bedroom homes with a usable area of ​​approximately 200 m² for a building of energy efficiency class A is 52- 55 kWh / m ² / year and A + is 49 kWh / year. m ² / year. The more energy efficient a building is built, the lower the energy requirement, which is very beneficial for both businesses and residents, ”he explained.

In addition, estimates of construction projects due to the new requirements can grow by 5 to 10 percent, calculates the interlocutor. According to him, during the transition from energy class B to A requirements, designers took their time to adapt to more stringent requirements and builders to more advanced materials and new solutions.

In addition, it required additional investments and project estimates increased by as much as 10-15 percent. However, the market has gradually adapted to the requirements of Class A and the customers themselves were soon convinced of the benefits of Energy Class A. ” 15 minutes he said.



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