Investment real estate market in Poland

According the Polish Investment and Trade Agency’s database, there are currently about 1200 offers available on the investment real estate market. Investment areas located in different regions of Poland differ in the available media, their purpose and size. Due to, the currently implemented infrastructure investments, the value of properties offered by various entities may increase significantly in the coming years.  

What are the different types of investment properties in Poland?

The first type are undeveloped investment plots, the so-called greenfield areas. Usually, these are very diverse in terms of location, size and the possible ways of developing the plot. Most of these areas are intended for the construction of industrial facilities such as factories, warehouses or logistics centers. Here you can also find real estate intended for the construction of service, tourist or recreational facilities.

Another type of site are brownfield areas. These include mainly built on plots with factory, warehouse or workshop buildings already located. These can be areas where  industrial activity has already been carried out, or completely new buildings that have been or  are being built either for the needs of specific projects (BTS, BTO), or as so-called speculative objects (built before finding a tenant/buyer).

Office space is  also available. The size, availability and character dependents on the location. Most of the facilities from this group are located in the largest urban centers such as: Warsaw, Krakow, Łódź, Wrocław, Poznań or Gdańsk. However, many facilities are currently being built in smaller cities that can attract entrepreneurs looking for more favorable financial conditions or that value proximity to their factories or logistics centers.

The last type of site are tourist facilities. This group usually includes facilities with cultural and recreational potential or real estate intended for the hotel sector.

Empty plot and built on plot

Buying an undeveloped property, on one hand, gives a number of possibilities. On the other hand, it involves the need to verify the construction possibilities, which means the need to contact Local Government Authorities. In addition to the issue of access to the media, an important factor is the verification of the provisions of local acts of law, such as the Local Spatial Development Plan. The acts of local law contain provisions, on among other things,  the function of potential buildings, their cubature and an indicator of the biologically active substance. Only after this  it is possible to order the preparation of a construction project and apply for appropriate permits. In the case of this form of investment, the participation of a legal advisor specializing in this field will be necessary.

Special real estate – nature conservation, monument protection, medical treatment

In Poland, there are various forms of legal restrictions related to the use of real estate. They may concern urban planning, the protection of the natural environment  or monuments and the health of local citizens. In each case, the restrictions result from completely different issues.

Restrictions related to protection of the natural environment usually occur on plots located in close proximity to forests, nature reserves, rivers or other natural water reservoirs. Another case of restrictions resulting from the protection of the natural environment are spa’s and spa protection zones. In these cases, special provisions apply only to those localities that have the status of health resorts. More information about spas can be found here.

The last type of restriction rules relate to real estate on which historical objects such as residences, former military facilities, hotels or post-industrial complexes are or may be located. If a given area is covered by the above restrictions, it is necessary to consult an archaeologist or the office of the conservator of monument protection and further proceedings must be in accordance with their instructions.

What regulations govern building opportunities?

The most important issues related to the possibilities of developing a plot are regulated by the Act of 7 July 1994 – Construction Law. The normative act regulates the rules for the implementation of all construction plans. However, it has to be remembered that this is not the only set of building regulations.

Another extremely important normative act is the Act of 27 March 2003 on spatial planning and development. Its provisions regulate aspects related to urban issues such as functions, size of buildings, its character or building area lines.

Regulations related to special cases, including among others those related to the protection of the natural environment, monuments and health issues, are contained in separate legal acts.

Provisions containing restrictions related to the protection of the natural environment can be found in the Act of 16 April 2004. Some of the provisions concerning this issue can also be found in the Act of 28 July 2005 on  health resorts and spa protection areas and on spa communes.

Provisions on the protection of cultural heritage, including the provisions regulating the status of historical real estate, can be found in the Act of 23 July 2003 on the Protection and Care of Monuments.

Where are investment properties located?

Investment areas are located throughout Poland, but depending on the region and its specificity, their number and characteristics may vary. If you are interested in local support, it is worth paying attention to the province in which the property is located and to which of the economic zones it belongs. It is worth noting that the regional division of economic zones does not coincide with the territorial division of the State. More information can be found in the Economic Zones. In case of any doubts, it is worth using PAIH or the local support offered by both the above-mentioned zones and other local and regional support institutions.

The process of searching for the right property can be simplified by using the Polish Investment and Trade Agency’s database.

We also encourage you to contact the  PAIH Investment Department. Their specialists responsible for supporting entrepreneurs considering an investment in Poland can make an individual analysis of the project and propose the most suitable areas for a given investment.

Who to contact if you are interested in investing in Poland?

There are many forms of ownership in Poland. Therefore, the sale of real estate is carried out by very different entities. Depending on the owner, different authorities take responsible for this. For example, public real estate may belong either to the State Treasury or to a Local Government unit. In both cases, the sale process can be carried out by very different entities. These include among others institutions such as Special Economic Zones, the National Organization for Agricultural Support, the Military Property Agency, or departments established for this purpose in Voiavodship and district offices.

There are many private consulting companies and specialized real estate agencies. However, their offer concerns strictly commercial cooperation, which means the need to incur additional costs. If you use the services of companies that do not have the appropriate references or are cheaper alternatives, the purchase process may be unnecessarily prolonged. One of the best ways to avoid similar complications is to use the support offered by the institutions located in the Industry Chambers tab. The process of purchasing real estate is also mediated by the Polish Investment and Trade Agency, specializing in foreign trade and investment. Employees of this institution can not only advise on the selection of property, but also verify investment opportunities and mediate in dialogue with the current owner of the property.

If you are interested in investing in Poland – contact the Polish Investment and Trade Agency.