From 2027, Polish municipalities will decide whether to approve residential units in hotels and investment apartments.
New Law Grants Municipalities Power Over Unit Certification
The Polish Ministry of Development and Technology is set to publish a draft amendment to the Act on Residential Premises Ownership. The new law, effective from 2027, will grant local governments the power to decide the issuance of certificates for residential units in buildings classified as collective housing, such as hotels and investment apartments.
“The issue of issuing certificates of independence for local units in collective housing buildings creates opposition and conflict on two levels: planning and the standards of the units themselves,” said Tomasz Lewandowski, Vice-Minister of Development and Technology. “Therefore, at the request of local government environments, the government has prepared specific legal solutions to help counteract bad practices.”
Investors Bypassing Local Zoning Laws
The core of the issue is that some investors build on land zoned for services but classify the development as collective housing. They then sell the units as separate properties with a share of the land. This bypasses the municipality’s planning authority. Unlike traditional hotels, which are temporary, these permanent-residential buildings create demand for infrastructure like schools and parking, shifting the burden and associated conflicts from the developer to the local government.
“If an investor builds a collective housing building on a plot designated for services and then carves out and sells units as investment apartments, they are circumventing the competences of the local government,” the vice-minister explained. “People live in such buildings just as they do in regular residential buildings, generating extra traffic, a need for parking spaces, and expectations directed not at the developer, but at the local authority.”
Lower Standards for ‘Investment’ Units
A further problem is the lower standards for these units. Residential units are subject to regulations regarding minimum size, sunlight, and parking. In contrast, standards for units in collective housing are significantly lower, as they are not intended for permanent residence. This allows for smaller areas, worse sunlight, and a much lower parking ratio.
“In practice, this means that an investor who formally builds a collective housing building and then carves out and sells units as separate property does not have to meet the civilizational standards required for apartments,” the vice-minister emphasized. “This allows them to circumvent regulations that would normally guarantee appropriate quality and living standards.”
Industry Groups Oppose the Changes
The proposed changes are not met with enthusiasm by all. The “Mieszkanicznik” association, which represents investors, and the “Polskie Stowarzyszenie Wynajmu Krótkoterminowego” (Polish Association of Short-Term Rental) have voiced their opposition.
“There is real demand for such units,” explained Joanna Ekert of the Mieszkanicnik association. “Many tenants prefer this over renting a room in a large apartment. They want their own independent space, even if it is small.” Grzegorz Żurawski, president of the short-term rental association, argued that this is state interference in the free market. “The state is increasingly deciding what can be bought and sold, which is an infringement on economic freedom.”
Municipalities Welcome the Proposed Changes
Local governments, however, view the proposed changes favorably. Jan Golba, the mayor of Muszyna and president of the Association of Health Resort Municipalities of Poland, stated that these buildings proliferate in spa towns with little oversight. While they attract tourists, they create significant costs and degrade the town. They pay lower property taxes and compete unfairly with full-service hotels.
“This is a good solution,” Golba commented. “Now, a certificate will only be issued when all criteria are met. Previously, there were no such rules, leading to many legal losses for municipalities. This situation may now change, and that is certainly a positive change.”
