Spatial planning reform in Poland – what is the future of general plans?

The biggest reform of the spatial planning system in Poland in years, i.e. the amendment to the Act on Planning and Spatial Development of 27 March 2003 (Dz.U.2024.1130, as amended), introduced by the 2023 Amendment, brings with it a number of challenges regarding, including the need to implement new planning documents – general plans (Polish: plany ogólne) by the end of 2025. These new planning documents will determine the future shape of Polish cities and towns. What are general plans, when should they be adopted and what challenges do investors and local authorities face when they come into force? This article outlines the main aspects of general plans.

About the new reality of spatial planning in Poland

The above-mentioned reform of the spatial planning system was introduced by the Act of 7 July 2023, most of which came into force on 24 September 2023. However, some of the changes introduced by the above-mentioned amendment, including the provisions repealing the existing studies on conditions and directions of spatial development, will not come into force until 1 January 2026.

At present, public authorities, and in particular municipal  authorities throughout the country, are facing the challenge of preparing and adopting new planning documents, known as general plans, which are to replace the former studies on conditions and directions of spatial development. In principle, the general plans should be adopted by the end of 2025, but in practice meeting this deadline may prove unrealistic. As a result, the Ministry of Development and Technology has just proposed an amendment to the Act on Planning and Spatial Development, which will, among other things, adjust the expiry dates of binding studies on spatial development conditions and directions to the timetable of ongoing planning works.

Spatial planning reform – “general plans” and their importance

The 2023 Amendment, among many other provisions, introduces into the legal system the general plans, i.e. new planning studies that will replace the currently binding studies on conditions and directions of spatial development. In principle, general plans will be adopted for each municipality and will set out things like:

1. planning zones – by specifying zones for single-family housing, multi-family housing, service zones, including large-format retail zones;
2. urban planning standards that define important investment parameters, such as the maximum above-ground building intensity, the maximum building height, the maximum proportion of built-up area, or the minimum proportion of biologically active area;
3. complementary development areas (Polish: obszary uzupełnienia zabudowy)– this seemingly unremarkable term conceals one of the fundamental changes brought about by the reform, according to which a zoning decisions will only be issued for areas designated as complementary development areas in the general plan (thus, the lack of appropriate regulation in the general plan will, in principle, significantly limit investment opportunities in areas not covered by local zoning plans);
4. downtown development areas.

In other words, the content of general plans will determine the type and features of future development in a given area. By the way, it is worth pointing out that one of the basic differences between general plans and today’s studies on conditions and directions of spatial development is their different legal nature and, consequently, the different binding power of the documents in question. While studies on conditions and directions of spatial development are not a binding source of law, i.e. they cannot directly shape the rights and obligations of citizens, as they are only acts of internal administration addressed to public authorities, the new general plans, in accordance with the wording of Article 13a of the Act on Planning and Spatial Development, are acts of local law, thus falling within the catalogue of sources of law directly referred to in the Constitution of the Republic of Poland.

How long will the studies on conditions and directions of spatial development remain in force? Deadlines and obligations for municipalities

Pursuant to Article 65(1) of the amending Act, existing studies on conditions and directions of spatial development of municipalities remain in force until the date of entry into force of the general plan of the municipality in a given municipality, but no longer than until 31 December 2025.

Therefore, if the municipality does not manage to adopt the general plan within the above-mentioned period, starting from 1 January 2026, the currently binding study of conditions and directions of spatial development will expire, and the municipalities will not yet be able to adopt local zoning plans or issue zoning decision, which in turn poses the risk of temporary investment paralysis in the municipality.

Planning procedure – extension of the validity period of studies on conditions and directions of spatial development

The procedure for adopting a general plan provides for the obligation for the authorities responsible for planning works to take into account a number of conditions for the spatial development of a given municipality, including elements such as the adoption of the spatial development plan of the voivodeship, or elements located in the municipality area such as: forms of nature protection, flood risk areas, mining areas, documented mineral deposits, health resort areas – the list of statutory guidelines is very extensive (for more information, see Art. 13b of the Act on Planning and Spatial Development Act).

In addition, as in the case of other planning documents we know, the procedure for adopting a general plan assumes the necessity to: on the one hand, obtaining a number of agreements and opinions from various institutions and public authorities, and on the other hand, conducting public consultations. The above factors affect the length of the planning process. Industry experts and local government officials agree that it may be impossible for many municipalities to adopt general plans by 31 December 2025, which is why the Ministry of Development and Technology is currently working on a draft regulation (no. UD198) to amend the Act on Planning and Spatial Development and certain other acts, the purpose of which is, inter alia, to extend the period of validity of the existing studies on conditions and directions of spatial development until 30 June 2026, which will avoid the risks described above. According to the short justification for the purpose of the regulation, by the end of January 2025, about 75% of municipalities had started to prepare a general plan.

The Ministry does not provide any information on the status of the planning works or the expected dates of their completion, but, according to the submitted proposal, the Ministry expects that the extension of the validity of the studies by a further six months will enable the municipalities to complete the planning works and will help to avoid planning chaos due to the premature expiry of the existing studies on conditions and directions of spatial development.

Amendment to the Act on Planning and Spatial Development – how will it affect the real estate sector and investors’ activities?

The reform of spatial planning, while necessary to organise and improve the development of cities and towns, poses a number of challenges for the real estate sector. Investors must take into account the need to adapt their strategies to the new reality, including possible investment restrictions that may result from the entry into force of general plans. From this point of view, it is crucial to monitor the progress of the work on general plans in each municipality and to analyse them in relation to the investment potential of a specific area allocated for investment. As mentioned above, delays in the adoption of general plans may lead to temporary investment paralysis, which in turn will affect the project implementation schedules.

The entry into force of the general plans will entail new challenges for the real estate sector, which include in particular:

Investment uncertainty:

• New general plans may introduce changes in the use of land, which will affect the value of the property and investment plans;
• Delays in the adoption of general plans, together with the simultaneous loss of the binding force of the existing studies on conditions and directions of spatial development, can lead to investment paralysis and block the implementation of new projects;
• The need to adapt to new urban planning standards.

Restrictions on obtaining a zoning decision:

• Zoning decisions are issued only for areas designated as “complementary development areas” in the general plan. If a particular plot of land is not included in the above category and is not included in the local zoning plan, this may limit the ability to develop the land in accordance with the investor’s plans at the time of acquisition;

Increased costs and longer investment implementation times:

• The need to adapt projects to the new general plans may result in additional costs for investors at the design stage, who will not be able to obtain the relevant approvals before the new regulations come into force;
• Delay in the investment process – many investors will be forced to suspend progress on design work and obtaining investment permits until the wording of the new regulations on the purpose of certain investment areas is clarified.

Risk of conflict with local authorities:

• Interpretation disputes between investors and local authorities over the wording of the new regulations.

Adapting to the new reality:

• A need to work with experts to help investors navigate the realities of the new rules.

Spatial planning reform – how can we help?

Taking into account the fact that both the issues signalled above and other issues related to the reform of the Polish spatial planning system are of great practical importance for our clients, TGC Corporate Lawyers will monitor the progress of further work on the implementation of the new regulations.

In the face of dynamic changes in spatial planning, our clients can expect comprehensive support. We offer a professional assessment of property in terms of investment, taking into account new regulations and potential changes to general plans.

We also help interpret new regulations and identify potential risks and investment opportunities. With our knowledge and experience, clients can make informed decisions that minimise risk and maximise the potential of their investments.

Check out our service:
Real estate law – legal services for companies