The end of cheap plots? “New master plans will limit the supply of land for development”

The reform of spatial planning may translate into an increase in land prices and a lower supply. The risks associated with the purchase of land real estate are also increasing, which also leads to the professionalization of the market and greater interest in consulting – said Otodom and Hectares experts during the webinar.


Delay of the reform and the new “spatial constitution”
“Recently, with the planning reform, the risks associated with the purchase of land properties are increasing, not decreasing,” said Katarzyna Kuniewicz, director of market research at Otodom, during a webinar on the presentation of the report.
“The more difficult the market, the higher people's expectations regarding consulting and analysis services are, so the market is professionalizing during the reform,” added Adam Parzusiński, CEO of Hectares, Land Developer.
In April 2025, an amendment was passed extending the time for the adoption of general plans by half a year. Now municipalities have until June 30, 2026 to adopt POG.
The general plan is a new “spatial constitution” of the commune, designating zones, rules for obtaining development conditions (WZ) and the direction of future local plans. Specifies areas permitted and excluded from development. Applies to all property owners who can submit applications and comments on projects created by municipalities throughout Poland.
“The deadline will probably be extended by two months – this is information from the ministry that the European Commission has consented to extend it by two additional months, so the new date will probably be August 31, 2026.” – said Parzusiński.
“On the one hand, we see classic market mechanisms such as demand, supply, prices. On the other hand, a historic reform of spatial planning is taking place. The date of July 1, 2026 is approaching (…), and the current situation is that 3 out of 2,479 municipalities have adopted general plans. The reform started in 2023 and the administration is facing a difficult task. 669 municipalities have published draft general plans,” he added.
Market paradox: supply falls, prices rise
The Otodom and Hectares report “Land real estate in Poland” states that the land market for residential investments is currently going through a paradoxical period where the weaker economic situation does not translate into price declines. Data analysis confirms this trend, pointing to the growing deficit of regulated plots and investors' fears of the new planning reform.
The report shows that data compiled from 2023 to 2025 show a clear change in the balance: supply has decreased, demand has remained stable, and prices respond to tensions in the supply-demand system. In 2025, the increase in prices and demand is recorded at 7%, while supply has decreased by 13%.
Investment risk: an attractive plot of land may become worthless
“Interest in land real estate has been at least constant in recent years, and there are periods when it clearly increases. All legislative activities, i.e. what we know about the planning reform, what is happening in municipalities, mean that land and plots that are less risky or that guarantee the possibility of building on these plots are naturally sought,” said the director of market research at Otodom.
“We observe that today we have to take into account new project implementation schedules. Obtaining a decision on development conditions means that we have to queue. (…) Today it is a longer process,” added Parzusiński.
The report shows that the offer of land in Poland is systematically decreasing. All voivodeships record declines year on year, which means that the market is becoming increasingly tighter. At the same time, prices are rising in every area segment.
“We are in a difficult moment as potential land buyers (…). Everything takes longer and longer each year, and this encourages – given the attractive offer of a new plot – to start purchasing such a plot quite quickly. At the same time, we have factors that will be even stronger in 2026, i.e. everything related to the planning reform,” Kuniewicz said.
“Plots that seem attractive (…), even though they are in places that seem to be ready for construction – it may turn out that in the general plan the commune decides to exclude this area from the possibility of development, so what today seems attractive and a good offer may turn out to be an offer with a high risk,” she added.
According to Parzusiński, excluded plots will significantly lose their value in the coming years.
“There will be privileged plots that will be able to be developed there, and their price will increase. The number of land will be even lower than now. Tightening the rules for issuing decisions on development conditions will affect the prices and supply of land on the market,” he said.
Experts assessed that a compromise between municipalities and stakeholders is still possible.
“A compromise is possible provided that we come forward, monitor the compromise and ask for it. Being interested in what is happening in terms of the plan in the commune where we own land or want to buy it is something we should not give up,” Kuniewicz said.
In Parzusiński's opinion, general plans determine the value of land and whether the supply, which is already lower, will have a chance to improve.
“The general plans show that some of the land will be eliminated and are in zones that do not allow any development (…) – it will not be possible to obtain a decision on development conditions and if a local plan is created in the future, it will have to be consistent with the general plan,” he added.
The report states that the coverage of the country's area with local spatial development plans is estimated at 33.8%.
A difficult task for municipalities and a fight against chaos
“First of all, the reform will soon affect communes that have low coverage with local spatial development plans – there the number of lands on which it will be possible to obtain decisions on development conditions will decrease. The supply will be limited by areas of supplementary development. If we say today that land is a safe investment, we mean that it is becoming less available and this rarity increases its value,” said Parzusiński.
Experts pointed out that general plans and development possibilities are derivatives of demographic forecasts.
“If the forecasts indicate the depopulation of municipalities, we will not do anything about it. We cannot predict the construction of more apartments,” said the director of market research at Otodom.
According to experts, the topic related to the reform is suburbanization, and spatial chaos is the result of the lack of spatial planning, and not the result of suburbanization.
“Plans are created within the administrative boundaries of cities (…). The adoption of a general plan, e.g. for Warsaw, does not affect what plan will be adopted just outside the city border and how development options will be planned there,” Parzusiński added.
Price leaders: Warsaw, Kraków and Gdańsk
Experts pointed out that city capitals are clearly more expensive than the average for the entire voivodeship.
The three largest agglomerations remain the market price leaders: Warsaw (PLN 893/sq m), Kraków (PLN 600/sq m) and the Tricity, represented by Gdańsk (PLN 484/sq m). These are the markets that record the highest growth dynamics – Gdańsk +24%, Kraków +20%. year to year. The average price in 16 voivodeship capitals increased to PLN 372/sq m with a dynamics of +6.8%. rdr.
There are also differences in the size of the plots.
“Plots of a certain size have price increases of up to several dozen percent during the year. It is difficult that with such price increases, apartments put on sale in the future will be cheaper in the largest provincial cities,” Kuniewicz said. (PAP Business)
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