The expiry of the so-called “Lex Developer” Act marks an important change in the rules governing residential development in Poland. Until its expiry, this special regime allowed certain residential projects to be pursued outside the standard planning framework.
For developers and investors, including foreign investors entering the Polish market, the key consequence is the need to conduct a thorough assessment of a property’s planning status and development potential before acquiring land or commencing an investment project.
What changed as of 1 September 2026?
For many years, the Lex Developer Act provided an alternative route for carrying out residential projects. This mechanism could be used provided that certain requirements were met and the approval of the municipal council was obtained.
Following the expiry of the Special Housing Act, new residential investments must be pursued within the framework of the reformed spatial planning system. Two new instruments are particularly significant:
- General municipal plans – a new, mandatory spatial planning instrument that replaces the previous studies of conditions and directions of spatial development. They are acts of local law and define the basic principles governing the municipality’s spatial development policy.
- Integrated Investment Plans (ZPI) – a special type of local spatial development plan adopted by the municipal council at the investor’s request. This instrument makes it possible to establish the rules for implementing a specific project through a procedure conducted in cooperation with the local government.
What happens to investments for which the procedure was initiated before 1 September 2026?
The expiry of the Lex Developer Act does not automatically terminate proceedings initiated before the Special Housing Act ceased to apply. Projects covered by such proceedings may be completed under the previous rules.
The transitional provisions provide protection for certain residential investments for which applications were submitted before the expiry of the Special Housing Act. In practice, when determining whether a particular investment benefits from these provisions, the key factors is the date on which the application initiating the proceedings was submitted, rather than the later date on which the municipal council adopts its resolution.
What comes next for new residential investments?
The expiry of the Special Housing Act is one of the more significant changes to have affected the real estate market in recent years. The implementation of new residential projects require the use of instruments provided for under the general spatial planning system.
In practice, it is crucial to determine whether the planned investment complies with the applicable local spatial development plan (MPZP) and, where no such plan exists, whether it is possible to obtain a decision on development conditions (WZ). In certain cases, an investor may also consider using an Integrated Investment Plan (ZPI).
From an investor’s perspective, this primarily means adapting the way in which a project is prepared to the current planning conditions. The possibility of using the special procedure provided for by the Lex Developer Act can no longer serve as an alternative to the standard spatial planning instruments.
Consequently, a thorough planning analysis of a property should be conducted before its acquisition or the commencement of the investment process. Verification of the intended use of the land, applicable spatial planning instruments and the possibility of obtaining the required administrative decisions enables investors to assess the risks and expected duration of the entire project at an early stage.
It should be emphasised that the expiry of the Lex Developer Act does not mean that new residential projects will be halted. Rather, the way in which they are prepared is changing – careful structuring of the investment process and the selection of the appropriate planning instrument are becoming increasingly important.
What do the changes mean for foreign investors?
The expiry of the Special Housing Act affects all investors planning residential developments in Poland, regardless of their nationality or place of establishment. For foreign investors, this primarily means that new residential projects must be prepared using the general spatial planning instruments available under Polish law.
At the same time, the rules governing the acquisition of real estate in Poland should be considered separately. Depending on their status, foreign investors may be required to obtain a permit from the competent authority, although exemptions apply in certain cases. This issue should therefore be assessed on a case-by-case basis, taking into account the investor’s status as well as the type and location of the property. These considerations are particularly relevant to foreign developers and investors entering the Polish residential market.
Summary
The expiry of the Lex Developer Act does not prevent new residential investments in Poland, but it changes the spatial planning framework in which they must be prepared. For investors, the key consequence is the increased importance of early due diligence and selecting the most appropriate planning instrument. This is particularly important for foreign investors, who should understand a property’s planning status and development potential before acquiring it.
