Current legal status and existing problems
The previous spatial planning system was based on three key documents: regional spatial management plans, municipality spatial development conditions and directions studies, and local spatial development plans. The study of conditions did not have the status of a legal act, meaning that urban planning decisions could be made even against the study’s assumptions. Officials often had considerable freedom in making these decisions, leading to a situation where urban planning decisions were not necessarily based on long-term strategy but immediate needs. This often resulted in spatial chaos negatively affecting spatial order in municipalities in the long term.
On one hand, building warehouses outside the urban area enabled the launch of investments in non-industrial locations, leading to new job opportunities. On the other, this sometimes led to situations where a building differed from the architectural structure of the surrounding buildings, making harmonious spatial development more challenging.
New rules – Local General Plans
The new law changes this state of affairs by introducing mandatory local general plans replacing the studies of conditions. These general plans (MPO) are intended to be more concise and easier to gain comprehensive information. Municipalities, which so far lacked local spatial development plans or had them only partially (e.g., for 30-40% of their territory), must enact local general plans encompassing the entire municipality territory by 1 January 2026. The provisions of the general plan will bind local spatial development plans and decisions on building and land development conditions. Previous local planning plans will retain their force until they expire according to the law.
Jacek Szkuta, Director of the Investment Land Department at AXI IMMO, points out, “Local general plans will include a maximum of 13 types of planning zones and clearly specified indicators such as maximum above-ground building intensity, building height, and biologically active surface area. The introduction of such parameters aims to limit the possibility of arbitrary interpretation of regulations by officials and minimize the risk of decisions inconsistent with the long-term developmental plans of the municipality. Moreover, the new regulations introduce a five-year validity period for the decisions on building conditions to limit land speculation and force investors to implement their investments faster.”
Zones of building fill-ins and their significance
An essential element of the new law is the introduction of zones of building fill-ins, which aim to spatially arrange more precisely by filling in gaps in the already formed areas. Every municipality will be obligated to designate such areas based on urban analysis. These zones can have diverse functions—from residential to service, industrial, and warehouse use. For the warehouse investment sector, an important factor is that in areas not covered by these zones, it will not be possible to obtain decisions on building conditions, which means limitations on situating new investments in areas not predetermined as developmental.
There will be a few exceptions to this, but these will mainly involve rebuilding overbuilding and extending existing buildings. Another change is the time limit for WZ; under the amended law, WZ will expire by law five years after the date they become legally binding. However, WZ validity before the new law comes into force is not limited to this five-year term.
Jacek Szkuta explains, “Designating zones of building fill-ins requires meeting several conditions. For example, for an area to be recognized as an additional build-up zone, it must include at least a grouping of five buildings, within a maximum 100 meters distance between neighboring buildings. This area is determined by a curve drawn 50 meters from the outline of buildings. That means that creating new warehouse investments will be more strictly controlled and dependent on existing buildings.”
Integrated Investment Plan – New tool for investors
Although the introduction of local general plans and zones of building fill-ins comes with some limitations on spatial planning flexibility, the new law offers investors tools that could ease their project implementations. One such tool is the integrated investment plan, which replaces existing special laws, such as the so-called Lex Developer. It expands the list of possible investments, not limited to residential projects as before.
The integrated investment plan must include a main investment and an additional one, allowing the investor to negotiate with a municipality the conditions for implementing an investment. However, it must be in line with the general plan, or during the transition period, the study. The investor is obliged to sign a so-called urban agreement with the local authorities, promising to finance certain investments for the municipality (such as building a road, a kindergarten, or public infrastructure) in exchange for adjusting the land to fit their needs. If the IIP meets the conditions of a simplified procedure, the mayor, city president, or head of municipality performs activities without the need for the municipality council to consent to join the IIP preparation. This approach grants greater flexibility in implementing investments but also entails additional costs for the investor.
Jacek Szkuta comments, “The new tool gives investors a chance to implement projects on a fast track, provided they cooperate with the municipality and cover infrastructural costs. In the long run, the law aims to manage space better, adapting areas to real economic and social needs, which might stabilize the real estate market but also introduce more selectivity in choosing investment lands. In practice, the law will force a more strategic approach to investment planning and might contribute to the market’s professionalism, but it will require flexibility from investors and efficient spatial plan management from municipalities.”
The law’s impact on the warehouse investment market
For the warehouse investment market, the new law may bring both benefits and challenges. On one hand, greater transparency and predictability in the planning system mean investors will have clearer guidelines on where and under what conditions they can implement their projects. This clarity can shorten the waiting time for administrative decisions and make the process of obtaining construction permits more transparent.
On the other hand, new regulations may lead to reduced availability of plots for warehouse investments. The limitation on issuing building condition decisions outside designated zones of building fill-ins means only selected areas can be set aside for new projects. This could cause a rise in land prices at strategic locations and greater competition for attractive plots.
Nevertheless, for investors who opt to use the integrated investment plan, the new regulations offer an opportunity to implement more complex projects in areas not previously allotted for warehouse investments. As long as investors can cover costs related to infrastructure for the municipality, they can negotiate conditions that will allow for the realization of their investment on chosen lands.
“The new planning law of 2023 introduces significant changes aimed at organizing spatial planning processes and increasing investment predictability. For the real estate market, particularly in the warehouse and industrial sector, these changes bring both benefits and challenges. On one hand, greater transparency resulting from the introduction of local general plans will ease planning and shorten administrative processes. On the other, the limitation on obtaining building condition decisions outside of zones of building fill-ins, coupled with more restrictive regulations, may lead to decreased land availability for investments, affecting land prices,” summarizes Jacek Szkuta.
Source: https://ceo.com.pl/nowa-ustawa-planistyczna-czyli-jak-zmienia-sie-zasady-planowania-przestrzennego-i-ich-wplyw-na-rynek-nieruchomosci-37063
