On 24 September 2023, with the entry into force of the new Planning Act, the Polish real estate market is facing significant changes that may affect the way developers, investors and local governments will approach land use. The new regulations, aimed at tidying up and standardising planning processes, will directly impact the real estate sector, especially on investments in industrial projects. While the new law prioritises greater transparency, shorter procedures and better alignment of spatial plans with real development needs, it also introduces new challenges and restrictions. Jacek Szkuta, Director of Land Department, AXI IMMO, discusses what awaits the real estate market from 2026. 

The existing spatial planning system has been primarily based on three key documents: provincial spatial development plans, studies of the conditions and directions of spatial development of municipalities, and local spatial development plans. However, the study of conditions did not hold the status of a legal act, allowing decisions on land development conditions (LDC) to be issued even against the study’s assumptions. This has often led to urban planning decisions prioritising immediate needs over long-term strategies, resulting in spatial chaos. In the long run, this chaos has detrimentally affected the spatial order in the municipalities. 

On the one hand, the construction of warehouses outside the urban area made it possible to launch the investment in a non-industrial location, which offered the possibility of opening new jobs. On the other hand, there were situations where the building differed from the architectural structure of the surrounding buildings, which hindered the harmonious spatial development of the area. 

New rules – General Plans 

The new law changes this with mandatory local general plans replacing condition studies. General Plans are designed to be more precise and accessible to gather complete information. Municipalities that have so far not had local master plans or have had them only partially (e.g. for 30-40% of their territory) will have to adopt local master plans covering the entire territory of the municipality by 1 January 2026. The provisions of the general plan will be binding for the findings of the local spatial development plan and decisions on land development and zoning. The existing local development plans will remain in force until they expire by law. 

Jacek Szkuta, Director, Land Department, AXI IMMO, points out: “Local general plans will include up to 13 types of planning zones and clearly defined indicators such as maximum above-ground development intensity, building height or biologically active area. Introducing such parameters is intended to limit the possibility of officials arbitrarily interpreting the regulations and minimise the risk of issuing decisions not aligned with the municipality’s long-term development plans. Moreover, the new rules introduce a five-year validity period for decisions on development conditions, which is intended to limit land speculation and force investors to carry out investments more quickly.” 

Development addition zones and their significance 

One of the key elements of the new law is the introduction of development replenishment zones, which aim to develop space more precisely by filling in gaps in areas that have already been formed. Each municipality will be required to designate such zones based on urban studies. These zones can have a variety of functions, ranging from residential to services to industrial and warehousing. For the industrial investment sector, it mustn’t be possible to obtain a decision on development conditions in areas not covered by these zones, which means that the possibility of erecting new investments in places that have not been predetermined as development areas will be restricted. 

There will be a few exceptions to this rule. These exceptions will apply to the reconstruction, superstructure and extension of existing buildings, providing some flexibility within the law. Another change is the time limitation of LDCs; according to the amendment, LDCs will expire by operation of law 5 years after the date they became legally valid. On the other hand, their validity before the amendment comes into force is not limited by this 5-year term. 

Jacek Szkuta, explains: “Several parameters must be completed to designate development addition zones. For example, a zone designated as a complementing development must include at least five structures with no more than 100 metres spacing between them. This region is delineated by a 50-metre arc formed from the structures’ outline. It implies that future warehouse projects will be more strictly restricted and dependent on existing ones.” 

Integrated Investment Plan (IIP) – A new tool for investors 

Although the introduction of local general plans and development addition zones involves some reduction in flexibility in spatial planning, the new law also offers investors tools to facilitate their projects. One such tool is the integrated investment plan, which will replace the previous specs, such as the Lex Developer, by broadening the catalogue of investments, as these can already be all types of investments, not only residential as before. 

The integrated investment plan requires the investor to include the main and supplementary investments. This plan empowers the investor to negotiate the conditions for implementing the investment with the municipality, provided it aligns with the general plan and the ongoing study. The investor is also responsible for signing an urban planning agreement with the municipality, committing to finance certain investments for the municipality’s benefit in exchange for the land conversion. Suppose the IIP meets the conditions of the simplified procedure. In that case, the head of the municipality, mayor or town mayor can proceed with the activities without the municipal council’s consent to enter into the IIP. This approach offers greater flexibility in the investment process but also entails additional costs for the investor. 

Jacek Szkuta, comments: “The new tool allows investors to implement projects in an accelerated manner, provided they cooperate with the municipality and cover infrastructure costs. In the long term, the law aims at better management of space and the adaptation of land to real economic and social needs, which may favour the stabilisation of the real estate market but also introduce greater selectivity in the choice of land for investment. In practice, the law will force a more strategic approach to investment planning and may contribute to the professionalisation of the market, but will require investors to be flexible and municipalities to manage their spatial plans effectively.” 

Impact of the law on the industrial investment market 

The new law can bring benefits and challenges to the industrial investment market. On the one hand, the greater transparency and predictability of the planning system means that investors will have more precise guidelines on where and under what conditions they can develop their projects. As a result, waiting times for administrative decisions may be reduced, and the process of obtaining planning permission will become more transparent. 

However, the new regulations also pose challenges. They could lead to a reduction in the availability of land for industrial investments. Limiting zoning decisions outside the designated development supplement zones means only selected land will be available for new projects. This could increase land prices in strategic locations and heighten competition for attractive plots. 

However, for investors who choose to use the integrated investment plan, the new regulations may provide an opportunity to develop more complex projects in locations not previously earmarked for industrial development. As long as investors can cover the infrastructure costs for the municipality, they can negotiate conditions that will allow them to invest in selected sites. 

“The new Planning Act from 2023 will bring about several important reforms to improve predictability in investment and organise spatial planning procedures. These developments will present opportunities and difficulties for the real estate market, particularly on the industrial and logistics sector. On the one hand, adopting municipal general plans will lead to more openness, expediting administrative procedures and promoting planning. A decrease in the amount of land available for investment will impact plot prices. However, if zoning decisions outside development addition zones are restricted and more stringent controls are implemented,”  concludes Jacek Szkuta. 

About AXI IMMO 

AXI IMMO offers comprehensive advisory services related to commercial real estate, including warehouse and office leasing and property management, real estate valuation, land acquisition, and sales. The firm also offers B2B and B2C supply chain management services. AXI IMMO’s greatest advantage is combining international business standards with deep local market knowledge. AXI IMMO has received numerous awards, including Best Local Agency of the Year in 2012 – 2019 and 2021 in the CiJ Awards and the award for Best Team in the warehouse sector in 2016 – 2017. In 2019 and 2023, the company won the Local Agency category in the CEE Investment Awards. AXI IMMO was named Local Agent of the Year 2023 & 2024 in the CEE region at the CEEQA.