Friday, 10 July 2026
Prolonged administrative procedures for obtaining residential building permits are reshaping Warsaw’s development land market, with plots that already have planning approvals or valid building permits commanding increasing premiums as developers seek to reduce project risk.
According to an analysis by real estate advisory firm Walter Herz, the average time required to obtain a building permit for a multi-family residential development in Warsaw has extended to approximately 18 months, making permitting one of the most important factors influencing land valuations.
The consultancy says the market has shifted significantly from previous years, when location, acquisition price and development potential were the primary determinants of land value. Today, developers are placing greater emphasis on investment certainty and the likelihood that projects can progress through the planning and permitting process without significant delays.
Data compiled by Walter Herz from Poland’s General Office of Building Control (GUNB) indicates that the average time required to secure a building permit has risen from around 82 days in 2016 to 488 days in 2025. Excluding amended permits, the average processing time increased from 88 days to 531 days over the same period.
The consultancy also notes that permit processing times accelerated sharply over the past two years, rising by around 30% in 2024 and a further 35% in 2025.
Although Polish regulations generally envisage building permits being issued within one month in standard cases or within two months for more complex applications, large residential developments often require substantially longer due to documentation requirements, environmental approvals, infrastructure coordination, consultations with neighbouring property owners, suspended proceedings and appeal procedures.
Walter Herz estimates that, in some cases, the entire administrative process from submitting an application to the point construction can begin now takes between two and three years.
The longer preparation period increases financing costs for developers, delays project launches and reduces the volume of new housing entering the market. The consultancy argues that this contributes to slower residential supply growth, with completed apartments reaching the market several years later than originally anticipated.
The prolonged permitting process is also influencing acquisition strategies. Developers and investment funds are increasingly targeting land covered by Local Spatial Development Plans (MPZP), while sites with final building permits have become some of the most sought-after assets in Warsaw’s residential market.
Walter Herz says investors are increasingly pursuing two strategies: acquiring land with the intention of obtaining a building permit before selling the site at a higher valuation, or expanding long-term development land banks. As a result, competition is extending beyond construction-ready projects to include sites that offer a clearer and more predictable path through the planning system.
The consultancy also reports a decline in the number of residential building permits issued in Warsaw. After reaching a peak of 281 permits in 2017, the number fell to 143 in 2025, including just 112 newly issued permits.
The findings reflect broader challenges facing Warsaw’s residential market. Demand for new housing remains supported by population growth and urbanisation, while the supply of development land with clear planning status has become increasingly limited. Industry participants have repeatedly identified lengthy permitting procedures as one of the principal obstacles to increasing housing supply.
As uncertainty surrounding future planning regulations also grows with the introduction of new general spatial plans, investors are placing greater emphasis on regulatory stability, infrastructure availability, environmental considerations and the overall feasibility of development projects when assessing land acquisitions.
According to Walter Herz, these factors are making legally secured development rights increasingly valuable. In Warsaw’s most established residential districts, land acquisition costs now account for as much as one-quarter of the final selling price of newly built apartments, reinforcing the importance of planning certainty in determining land values.
