real estate | In Principle

Go to content
Subscribe to newsletter
In principle newsletter subscription form

real estate

The master plan
Pursuant to the 7 July 2023 amendment to the Spatial Planning and Development Act, the zoning study will be superseded by a master plan and commune development strategy. The provision imposing an obligation on communes to adopt a development strategy enters into force on 1 January 2026. Introduction of master plans is intended to vest more power in local governments in Poland in establishing policies for land use and development.
The master plan
Integrated development plan
The July 2023 amendment to Poland’s Spatial Planning and Development Act introduced a special form of local zoning plan—the integrated development plan. It grants communes and investors more freedom to locate development projects, regardless of the findings of the existing local zoning plan. Ultimately, integrated development plans will replace the resolutions on siting of housing developments issued under the housing special act (such resolutions can be issued until the end of 2025). But an integrated development plan can be enacted for any type of project, not just residential projects.
Integrated development plan
Environmental aspects of real estate development: What will 2024 bring?
The environment is a key element of real estate development and construction, and has a major impact on the duration of the process. In 2023, there was increased legislative activity in this area, but we will not know its real impact on the construction process until 2024.
Environmental aspects of real estate development: What will 2024 bring?
What fee model to use in construction contracts?
The choice of a fee model is a key element of any contract for construction works. In market practice, several mechanisms are in place for determining the payment method, each of which has its advantages and disadvantages. The chosen fee model should correspond to the specifics and scope of work and take into account the interests of both parties to the contract.
What fee model to use in construction contracts?
Overview of major changes to the Construction Law
In 2022, the Polish parliament introduced a number of significant changes to the Construction Law. The most important of these are related to further digitalisation of administrative processes in construction. The amendment introduced the ability to maintain a daily construction log and site book in electronic form, as well as an electronic central register of licensed builders. The administrative procedures have also been simplified for construction of single-family houses with an area of up to 70 m2, and new obligations for the energy performance of buildings have been implemented.
Overview of major changes to the Construction Law
Legislative work aimed at phasing out the right of perpetual usufruct is underway
The government’s draft reform of perpetual usufruct in Poland focuses on changing the rules and method for determining the price for sale of a property to its perpetual usufructuary. Additionally, perpetual usufructuaries are granted a claim to acquire the property they hold. This is part of the process of phasing out perpetual usufruct entirely.
Legislative work aimed at phasing out the right of perpetual usufruct is underway
Lease agreements in the private rented sector
More and more residential tenants recognise the advantages of institutional leasing over renting from private individuals, due to the security and stability of the lease relationship, the attractive standard of the units offered, and the package of property management services. The question is what type of agreement to conclude in such a lease relationship.
Lease agreements in the private rented sector
Deed submitting to enforcement in an institutional lease agreement
In recent years, there has been a notable revival in the residential lease market in Poland, and thus an increase in the interest in lease property investments also among foreign investors in the private rented sector (PRS). In response, the Polish parliament has introduced a number of new provisions on lease agreements. One such change was the introduction in 2017 of the institutional lease agreement, which is designed specifically for use by businesses letting residential premises in the private rented sector.
Deed submitting to enforcement in an institutional lease agreement
The planning gap: Change of the rules for determining compensation and planning fees
On 7 January 2023, provisions came into force in Poland amending the rules for determining the value of real estate in the case of adoption of a local zoning plan after a “planning gap.” Will they affect property owners, and to what extent?
The planning gap: Change of the rules for determining compensation and planning fees
The housing cooperative: A new approach for implementing residential projects
On the residential construction market in Poland, currently dominated by real estate developers, housing cooperatives can begin building starting 1 March 2023, when the new Housing Cooperatives Act enters into force, introducing a framework for their activities and providing incentives for such grassroots construction initiatives.
The housing cooperative: A new approach for implementing residential projects
The investor’s lack of cooperation and rescission of a construction contract
Cooperation between the parties is essential to implement many contracts. This is particularly so in the case of a construction contract or a contract to produce a specific work, where the purpose of the contract is achieved over the course of a fairly complex process and comprises many elements. The Polish parliament has recognised this strong dependence and has provided a far-reaching solution applicable when the necessary cooperation is lacking. Such a situation may even lead to rescission of the contract.
The investor’s lack of cooperation and rescission of a construction contract
The Electronic Construction Daily Log
The introduction of an electronic construction daily log is the next step in the digitalisation of the construction process.
The Electronic Construction Daily Log