Government reform UA10: Easier access to land for housing developments

The government has announced a draft law (draft number: UA10) aimed at increasing the availability of land for housing development. The changes are expected to remove legal barriers hampering the development of the real estate market in Poland and to streamline investment procedures.

The most important changes in the draft UA10

Removal of restrictions on trade in agricultural land in cities

Agricultural land located within the administrative territory of cities will cease to be covered by the Act on shaping the agricultural system, which will allow it to be freely allocated for the construction of flats.

The right to repurchase such land by the National Agricultural Support Centre (KOWR) will also be abolished.

Simplification of planning procedures

It is planned to shorten and simplify procedures related to spatial planning. One of the simplifications will be the possibility to introduce changes to local plans under a simplified procedure, allowing the addition of an extra storey in buildings less than 30 metres high.

Municipalities will also be given more freedom to establish rules for cooperation with investors under so-called integrated investment plans (IIPs). The municipal council will have the possibility to establish, by way of a resolution, the guidelines for urban planning agreements concluded within the ZPI.

Restoration of perpetual usufruct for residential purposes

The perpetual usufruct, abolished in 2019, will be allowed again. This will allow investors to obtain a permanent title to the land, paying only an initial fee of 15 to 25 per cent of the land value and further annual fees (of 1 per cent of the land value).

Importantly, according to the draft, once the purpose of the agreement is fulfilled (completion of the investment by the perpetual usufructuary), the right of perpetual usufruct will be transformed by operation of law into ownership of the real estate.

Modifications to the Act on Implementation of Housing Investments

Significant changes are to be made to the provisions on the determination of the location of residential developments. The obligation to provide a minimum retail and service area within the development will be abolished. There will also be a possibility to suspend the localisation procedure in order to make amendments, without having to start the whole process from scratch.

It is also planned to remove the obligation to provide recreational and sports areas within a development if such areas are in the vicinity of the development.

What is the purpose of the legislation?

The new legislation aims not only to speed up the delivery of housing projects, but also to align developments with the needs of local communities. The draft law is currently at the legislative consultation stage in the Council of Ministers. The planned date for adoption of the draft by the Council of Ministers is the first quarter of 2025.

If you want to find out how changes to access to land will affect your investment plans, get expert help. Our experts can help you adapt to the new regulations and take advantage of new opportunities.