Legal Highlights for Real Estate – February 2025
Draft act on measures to increase the availability of land for housing construction
The draft act on measures to increase the availability of land for residential construction (“Project”) takes measures to increase the availability of land for residential construction in Poland to balance the growing demand for residential properties with the limited supply of land, which leads to an increase in real estate prices. The proposals include the removal of legal and procedural barriers such as:
- Restrictions on the trading of agricultural land – obstacles arising from regulations on agricultural real estate in cities.
- Prohibition on establishing perpetual usufruct for housing purposes – which limits investment opportunities.
- Complexity of planning procedures – e.g. in the amendment of building parameters and the preparation of integrated investment plans.
- Ineffectiveness of the planning fee – current regulations do not compensate for the municipality’s costs associated with the adoption of local zoning plans.
- Restrictions on the use of tools under the Housing Act – including mandatory parking space ratios not adjusted to local needs.
- Problems with the division of properties – legal ambiguities related to location resolutions.
- Non-utilization of State Treasury land – lack of action aimed at utilizing attractive areas for housing purposes.
- Extending investment processes – among others, through appeal measures of the parties to the proceedings.
The project also provides for extending the deadlines for perpetual usufructors to purchase land, as well as settling the issue of state aid and new rules for issuing professional certificates for property valuers. These solutions are to facilitate the implementation of housing policy, including in the social and municipal sectors. The planned date for the adoption of the Project by the Council of Ministers is the first quarter of 2025.
Draft amendment to the Act on Social Housing Development and the Real Estate Development Act
On February 20, 2025, a draft amendment to the Act on Social Forms of Housing Development and the Act on Property Development was published. The draft assumes the imposition of an obligation to pay contributions to the Property Development Guarantee Fund (DFG) by property developers who started projects before July 1, 2022. The amount of the contributions will be calculated according to the rates in force at the time the Development Act comes into force: 0.45% for an open escrow account and 0.1% for a closed one.
The bill stipulates that the regulations regarding contributions will not apply to contracts concluded before the amending act comes into force, which means that the obligation only applies to new contracts. Currently, the contribution for investments started before July 1, 2022, is 0%, which has been confirmed in the justification of the bill.
In addition, the Parliamentary Club Polska 2050-Trzecia Droga (Poland 2050-Third Way) has proposed another amendment to the Act on Property Development, which would impose new obligations on property developers:
- Website – Each property developer will be required to maintain their own website, which may represent an additional cost for small companies.
- Publication of information – The website should contain contact details, the location of the investment, prices (including VAT) of premises, associated rooms, rights and other monetary benefits arising from the contract. The draft requires clarification regarding the scope of information, e.g. on parking spaces or tenant amendments.
- Price updates – Developers will have to update prices on an ongoing basis and take into account the dates of amendments and the rules for the application of discounts. This obligation may cause difficulties in the case of frequent price changes.
- Information in advertisements – It will be mandatory to include the website address with full information in advertisements.
Failure to comply with these obligations will be treated as a practice infringing collective consumer interests and will be subject to control by the Office of Competition and Consumer Protection (UOKiK). The requirement for transparency of pricing policy, which does not apply to other groups of entrepreneurs, and the inconsistency with the Omnibus Directive raise doubts.
