The changes include both technical issues related to construction and planning issues regarding the investment location.
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The “RynekPierwotny.pl” portal has prepared a report which shows that in some cases, the actual increase in investment expenditure may exceed PLN 1,000. PLN per square meter. Experts analyzed individual areas in which significant modifications to the regulations took place.
The costs of housing construction are rising. Sound insulation and energy costs
Sound insulation standards have increased to the AQ-0 class level. Developers now have to use thicker partitions between apartments, ceilings with higher parameters and vibration insulation of installations. According to estimates of the portal “RynekPierwotny.pl” this element increases financial outlays by PLN 100-150 per square meter.
Although formal requirements regarding energy efficiency have not become more stringent, the market is forcing higher standards. Apartment buyers expect better energy parameters and installations of renewable energy sources. This market pressure translates into an additional PLN 100-250 per square meter.
Fire regulations and defense obligations
The clarification of technical regulations in the field of fire resistance, fire partitions and smoke removal systems generates further financial burdens. Analysts estimate them at PLN 50-120 per square meter.
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The most costly element turns out to be the requirements arising from the Civil Protection Act. The so-called Shelter duties require the use of reinforced reinforced concrete structures, which increases the consumption of steel and concrete. This also applies to the design of underground garages. Here, the increase in expenses may reach PLN 200-600 per square meter, and in certain projects even exceed this limit.
Municipal General Plans introduce uncertainty
Jarosław Jędrzyński from the “RynekPierwotny.pl” portal drew attention to the introduction of the General Municipal Plans system and the linking of decisions on development conditions with the new planning structure.
“In the short term, changes may lead to increased investment uncertainty. In communes that do not adopt general plans on time, the possibility of obtaining new decisions on development conditions (WZ) may be limited, which will temporarily reduce the availability of investment land. The economic effect of this change may include: an increase in the prices of plots with a valid building permit or a valid local plan, extension of the investment cycle and increase in project financing costs, and greater selectivity in launching new investments.” – pointed out the expert.
Some market analysts note, however, that in the long term, the planning reform may increase the availability of land for residential development. It will be possible to transform the use of areas previously included in the studies as non-residential to residential. Examples of such processes have been recorded in recent years, including: in Warsaw. The final impact of the reform on land supply depends on the way in which new documents are implemented by individual local governments and the pace of their adoption.
