Does bureaucracy affect the end price here more than in other countries that you've done development in?
Yes, and its a lot more expensive here than in the UK.
eg:Small block of flats in the UK, architect, planning permission, buidling inspector. £4-5000.00.
This includes 5 visits from Local council building inspector.
Poland, architect, planning permission £10-20,000 depending on greed. You then have to employ your own building inspector and pay him around around £100.00. a month for 1 or 2 half hour visits and this is for the duration of the contract. On completion, you pay £200.00. each for the electrics and water connection to be tested and certified and "stamped"
(this is not carried out by the companies that install same)
The city council then have to "sign off" the building (legalize it) and if there is any discrepancy on any measurements you are fined £600.00. On my parking spaces (for 26 cars I was undersized by 60cm, apparently, nobody in Poland drives a Maluch, they all drive SUV's or Rolls Royces) so was fined. They always find something wrong so there is always a fine. (Nobody told me this in the beginning but apparently its the norm in Poland)
On 13 apartments, the man that issues the "energy certificate" ( or HIPS as its known in the UK) wanted £200.00. per apartment but managed to talk him down to £900.00. as a job lot.
I could write a book or make a film about getting the electricity, water and gas companies to actually connect the building up to the mains services. You have to get the written permission of all the neighbours and landowners over/under wherever the cables/pipes pass and God help you if they live abroad or in the North of poland. This does not include the 50 visits to each office to sign different forms and sometimes travel to 3 different offices to get them"stamped".
I would have to say that time and moneywise, its at least 400% more expensive to do the paperwork for a project of identical size in the UK. This does not take into consideration, the stress of having to deal with the dumb bast***ds.
The moment you buy the land to build on, you pay a business tax, based on the size of the land until you have sold all the properties (this does not apply in the UK)
I have more paperwork for one project than I had for 10 years continuous work in the UK.
So when you read what Mark Biernat (Polsky, etc, etc, etc or whatever name he decides to use on the day) posts on these property threads, you know he is talking out of his ass.
That's again big time BS. We examplined all costs into building,
and total cost NEVER surpassed 1000 PLN/sq.m. built.
I would want that just for the paperwork.