Poland Need for clarity introducing reforms

This nationwide reform will directly affect investment, land availability, urban planning, and the collaboration between public and private sectors. At the 'Decoding Warsaw's Draft General Zoning Plan' conference organised by ULI Poland and the DWF law firm, local government representatives from Warsaw, investors, architects, and legal experts concluded that the market is ready for these new regulations, provided the transition is handled predictably and consistently.

Cities in a Dual Reality
The preparation of a general plan is an unprecedented undertaking, due to its scale and complexity. The process is not only made intricate by a city's size but also because of the new digital format of the documentation and the need to reconcile thousands of submitted applications.

We are developing local plans in parallel to ensure investment continuity. It's essential for residents and the market to clearly understand the changes. Transparency and open consultations are prerequisites for the reform's success.
Aneta Wardzińska-Siczek, deputy director of the office of architecture and spatial planning for the City of Warsaw

Clear regulations encourage investment. While master plans can streamline market operations, consistency in their application is vital. Foreign investors find predictability crucial; they can operate within demanding frameworks, but the system must be transparent and uniformly applied. In Poland, administrative decisions are often subject to ambiguous interpretations rather than clearly defined principles, leading to uncertainties in project risk assessment. Leszek Stankiewicz, Managing Director of YIT Polska, stressed that the absence of stability is a more significant issue than planning constraints.

Jonathan O'Neill, Investment Manager at Revive, explained, "In the investment process

While investing, time is as valuable as capital. When studying new planning frameworks, we don't ask: 'Are the regulations perfect?' but rather: 'Do they allow us to predict the course of the procedure?' An investor makes decisions based on real, quantifiable risk. if we cannot ascertain whether a process will take 14 months or four years, it represents an unknown—something we cannot incorporate into financial models. Master plans have the potential to bring order to the system, provided they recognise that investment operates on an economic, not an administrative, timeline.
Jonathan O'Neill, investment manager at Revive

We operate within defined project cycles, where even minor delays can affect overall profitability. Therefore, we need clarity on the transition period of the reform, including the tools that can be applied, the duration, and how changing regulations will impact ongoing projects. We are ready to invest, but we require assurance that rules won't change mid-course.
Tomasz Dąbrowski, Managing Director at Zeitgeist Asset Management

Integrated Investment Plans (IIP): Filling the Gap
A crucial aspect of these changes is the introduction of Integrated Investment Plans (IIP), designed to replace the "lex developer" approach while integrating planning, participation, and urban planning agreements. This new tool will facilitate projects that do not align with the typical local planning framework.

A city is a dynamic entity evolving faster than any planning document can capture. A general plan should guide the direction without hindering the city's ability to adapt to new needs. Tools enabling negotiations for complex mixed-use areas are vital. IIPs foster shared responsibility, allowing for precise agreements on infrastructure, urban quality, and public benefits. This tool is not about sidestepping procedures but about creating solutions better suited to the reality on the ground.
Piotr Sawicki, architect, urban planner, and founder of SAWAWA Design Studio

Collaborative Architecture
The planning reform presents a challenge for Poland that extends beyond mere documentation.

We are undergoing a shift that impacts the entire logic of planning, not just a single document. Now is the time for public and private sectors to collaborate on the process, the interpretations, and the standards of conduct. The success of the reform hinges on managing the transition period effectively. If executed clearly and predictably, the new planning tools will streamline the system and improve the quality of investment.
Joanna Wojnarowska senior partner, global deputy head of real estate DWF