The amendment to the Act on Planning and Spatial Management introduced last year has brought a significant revolution. It now largely dictates the process of planning, preparing, and executing real estate investments in Poland, and this influence will increase in the coming years. Let’s take a look at a few key aspects of these changes.
A revolution in spatial planning
The amendment to the Act on Planning and Spatial Development took effect on September 24, 2023, and has gradually been transforming planning issues in our country. The aim of the reform is to increase the flexibility and integrity of the planning system, simplify procedures, and improve spatial order. Among other things, two tools will serve these purposes – the general plan and the integrated investment plan. A transitional period will be in effect until the end of 2025.
One of the most important changes is the replacement of the commune’s study of conditions and directions of spatial development with the commune’s development strategy or supra-local development strategy and a general plan, which will be a local law act. Each commune is obliged to prepare it by the end of 2025. It will be the basis for adopting local plans and issuing decisions on building conditions. It should define planning zones and municipal urban standards. It will also allow the delineation of areas for infilling – explains Tomasz Stoga, president of PROFIT Development and vice-president of the Polish Developers Association.
The development strategy of the commune or supra-local development should include, among other things, provisions relating to the shaping of spatial policy in the commune, for example, directions of changes in the structure of land use, including new residential development. This is a concrete factor determining developers’ undertakings.
The impact of the reform on housing
It is worth noting that the general plan will have to be consistent with the commune’s development strategy or supra-local development strategy. This document will ultimately define the key parameters of the building. Within the 13 planning zones, developers will be interested in two – the multifunctional zone with multifamily housing and the multifunctional zone with single-family housing. Parameters such as maximum aboveground building intensity, maximum building height and maximum share of building area will be specified. In addition, the minimum share of biologically active area for these zones will be determined – in most cases at the level of 30%.
The general plan may also include standards for the accessibility of social infrastructure, access to public primary school and public green areas, as well as to other facilities. All this will significantly influence the way real estate investments are planned and carried out.
A significant document from the developers’ perspective will also be the integrated investment plan, a special type of local plan, adopted by the commune council at the request of the investor, after negotiations and the conclusion of an urban contract. It will define the conditions of a given investment and the obligations of the parties. It is intended to supplement, and ultimately replace the Act colloquially known as “the developer’s law”.
The role of developers in the process of changes
The above changes represent a challenge for developers, both in the context of acquiring land and planning and carrying out investments, and all their decisions now require an even more detailed analysis.
In many communes, work is already underway on the general plans. It is very important for developers to actively participate in this undertaking. They can submit applications, participate in social consultations, monitor decisions made by authorities, especially in the context of designating areas for residential construction. It is worth remembering that any considered applications should contain a justification – emphasizes the president of PROFIT Development.
It is worth noting that the validity period of decisions on building conditions has also changed. Those that become legally binding after December 31, 2025, will only be valid for 5 years. The future of real estate investments in Poland will certainly depend on the form and implementation of the new regulations. The approach of local governments to creating this new reality, the involvement of developers in this issue, and carefully monitoring the introduced changes will be key.
Source: https://managerplus.pl/nowelizacja-ustawy-o-planowaniu-i-zagospodarowaniu-przestrzennym-a-inwestycje-deweloperskie-18471
