Communion season offers brief relief as catering debt tops PLN 1 billion

The seasonal boom linked to spring communions and upcoming weddings has brought a short-term boost for many businesses in Poland’s catering and service sectors. However, the overall financial health of the industry remains fragile. According to data from the BIG InfoMonitor Debtors Register and the BIK database, while some improvement has been observed in how companies settle their debts, total outstanding liabilities in the food service industry still exceeded PLN 1 billion at the end of March 2025.

Increased demand for events such as communions has created a spike in orders for restaurants, catering services, photographers, and florists. Yet, these higher revenues are often offset by rising operational costs, such as energy, raw materials, and wages. As a result, the profits generated during this season offer only temporary relief rather than a path to lasting recovery.

Organizing a first communion celebration remains a significant expense for families. Costs can range from a few thousand to tens of thousands of zlotys, depending on the scale of the event. However, more households are opting for modest gatherings at home, reducing guest lists and preparing some of the food themselves. This shift is driven largely by rising prices. Over the past two to three years, the cost of services such as catering, photography, and floral arrangements has increased by 15–20 percent.

Despite this seasonal activity, the number of restaurants and catering businesses with overdue financial obligations continues to rise. As of March 2025, the total value of unpaid liabilities in the food-related services sector (PKD 56) stood at PLN 1.03 billion. This figure is only marginally higher than a year earlier but marks a 41 percent increase since 2021. Within the sector, restaurants (PKD 561) accounted for PLN 873 million in arrears—up 42 percent over five years—while catering companies (PKD 562) owed PLN 101.5 million, a 41 percent rise over the same period.

Though there has been a slight year-on-year improvement—some restaurant debt decreased and the catering segment saw a drop of over PLN 3 million in overdue liabilities—the overall trend suggests that many businesses are still struggling. Movable catering establishments recorded the highest increase in debt, while fixed restaurants showed modest recovery. The average debt per unreliable debtor has slightly decreased, suggesting a small reduction in financial risk across the industry.

The challenges are compounded by the fact that the number of active catering businesses has grown by nearly 25 percent in five years, while the number of indebted companies has grown at almost the same pace. According to Dr. Waldemar Rogowski, Chief Analyst at BIG InfoMonitor, the sector’s expansion is not necessarily matched by stable profitability. Inflation and rising input costs have eroded margins, even as revenue increases.

Photographers, who also benefit from the communion season, are faring somewhat better. The popularity of professional photo shoots has increased, with costs for such services ranging from PLN 300 to several thousand. The photography industry (PKD 742) recorded a total of PLN 28.6 million in overdue liabilities at the end of March 2025—2.3 percent lower than the previous year. Over five years, however, debt in the sector rose by over 28 percent. The number of active photo companies has grown by more than 20 percent, but the number of indebted entities increased by just 6.7 percent, indicating relatively healthy financial management among newer businesses.

Florists also see increased demand during communion season. Professional floral arrangements for churches and reception venues have become common, with costs ranging from a few hundred to several thousand zlotys. At the end of March 2025, florists and related businesses (PKD 4776Z) had accumulated PLN 67.2 million in unpaid liabilities, up 8.7 percent from the previous year. The average debt per defaulting company stood at around PLN 61,000.

Late payments remain a persistent problem for the broader SME sector. According to a BIG InfoMonitor survey, nearly three-quarters of small and medium-sized enterprises in Poland report experiencing delays in receiving payments from their contractors. Paweł Szarkowski, President of BIG InfoMonitor, advises business owners to check potential partners in debtor registers to avoid being drawn into financial difficulties caused by others’ instability.

Consumers are also encouraged to take precautions. Before booking a venue or hiring a service provider for family events such as communions, it’s advisable to verify the financial standing of the company. This step can help prevent situations where a business closes unexpectedly, leaving customers without services and losing deposits.

Although the communion season brings a wave of orders, it does not signal a full recovery for the catering and service industries. Many companies remain heavily indebted and vulnerable to market fluctuations. The current boom is a much-needed opportunity to stabilize, but true recovery will require structural improvements and greater financial resilience.

Source: BIG InfoMonitor and BIK
Photo: Paweł Szarkowski, President of BIG InfoMonitor

Residential construction in Olomouc region dropped 40% in early 2025 despite national growth

Residential construction in the Olomouc region saw a sharp decline in the first quarter of 2025, with only 280 housing units breaking ground between January and March—a 40 percent drop compared to the same period last year, according to data from the Czech Statistical Office (ČSÚ). This decline contrasts with the national trend, where the number of housing starts increased by 2.9 percent year-on-year to a total of 8,297 apartments.

In the Olomouc region, most of the construction activity in the first quarter focused on new developments, accounting for 211 of the 280 residential units. Of these, 150 were intended for family homes and 61 were part of new apartment buildings. The remaining 69 apartments were started within completed or ongoing projects.

The slowdown comes after a strong year in 2024, when the region saw a rebound in housing activity. That year, 1,694 apartments began construction—an increase of 14.5 percent compared to 2023. Two years ago, 1,475 apartments were started, which itself was a 34.6 percent drop from the previous year, following a one-third increase in 2022.

In recent years, construction activity has concentrated in the city of Olomouc, supported by a number of major residential developments. Projects have included the transformation of former military barracks and industrial sites into residential complexes. Sochorova stavební developed over 300 apartments in the city center, while Link City Centrum NS delivered more than 200 units on the site of former malt houses and cold storage facilities. Redstone is also progressing with its Šantovka Living project, which is set to deliver 12 apartment buildings near the city center.

Looking ahead, several large-scale developments are in the pipeline. Stafos-Real plans to build a residential complex with 381 apartments in the Olomouc-Nové Sady district. Objekt Invest is preparing one of the largest projects, Green City, a new urban quarter expected to house over 5,100 residents in more than 2,000 apartments. This development will also feature 64 commercial spaces, projected to create around 80 jobs.

Despite a promising outlook for future developments, the slowdown in early 2025 reflects broader challenges in the construction sector, including permitting delays, financing constraints, and fluctuating market demand.

Source: ČSÚ and CTK

Atenor sells BakerStreet I in Budapest, cuts debt by over €50 million

Atenor has announced the sale of its BakerStreet I property in Budapest’s Újbuda district to an international investor. The fully leased office and retail development is one of five remaining Central European office assets marked for divestment under the company’s current strategic plan. The transaction will reduce Atenor’s consolidated debt by more than €50 million.

The sale is part of Atenor’s three-year strategy aimed at expanding its residential and mixed-use pipeline, decreasing its exposure to the office sector in Central Europe, and consolidating core office assets in key urban markets. Despite the challenging investment environment across the region, the company stated that the transaction may have a modest negative impact on its 2025 financial results.

In line with this strategic direction, Atenor is continuing the development of BakerStreet II, a neighbouring site. The company plans to submit a permit application later this year to convert the project into a residential development of approximately 20,420 square metres, which will include a small retail and office component. The project is intended to support the ongoing revitalisation of the Újbuda area while aligning with Atenor’s shift towards residential and mixed-use real estate.

Hungary’s inflation slows to five-month low in April

Inflation in Hungary eased more than expected in April, reaching its lowest level in five months as price pressures across several key categories moderated. According to the latest data from the Hungarian Central Statistical Office, the annual inflation rate slowed to 4.2% in April, down from 4.7% in March. This marks the lowest rate since November 2024 and signals a gradual cooling of consumer price growth after last year’s surge.

The decline in inflation was primarily driven by slower price increases in food, services, and consumer durables. Food inflation decelerated to 5.4% in April, compared to 7% in March, reflecting a stabilization in global food commodity prices and improving domestic supply conditions. Price growth in services also eased, dropping to 7% from 7.5% a month earlier. Meanwhile, prices for consumer durables rose by 2%, a slight moderation from the 2.1% increase in March.

However, inflationary pressures persisted in some categories. Prices for alcoholic beverages and tobacco accelerated, rising by 6.3% in April compared to 5.5% the previous month, partly reflecting recent tax adjustments. Energy prices also reversed their previous decline, with the cost of electricity, gas, and other fuels rising by 3.5%, following a 2.7% decrease in March.

On a monthly basis, consumer prices edged up by 0.2% in April, after remaining flat in March. This slight uptick was driven mainly by higher energy and alcohol prices, partially offset by seasonal declines in certain food products.

Core inflation, which excludes volatile items such as food and energy, fell to 5% in April, down from 5.7% in March. This is the lowest level in four months and indicates a broader slowdown in underlying inflationary pressures.

Economists suggest that the latest figures may strengthen expectations for further monetary easing by the Hungarian National Bank in the coming months, as inflation continues to move closer to the central bank’s target. The central bank has already implemented a series of interest rate cuts since late 2024, seeking to balance inflation control with support for economic growth amid weaker domestic demand.

“April’s inflation data confirms a continuing disinflation trend, particularly in food and services, which have been key drivers of recent price increases,” said a senior economist at Erste Bank Hungary. “However, the uptick in energy prices will need to be monitored, especially if global energy markets remain volatile.”

Despite the decline, inflation remains above pre-pandemic levels, and household budgets continue to feel the impact of elevated prices. Consumer spending has been subdued, reflecting caution amid economic uncertainty and high borrowing costs.

Looking ahead, analysts expect inflation to gradually ease further over the coming months, barring unexpected shocks in global energy or food prices. The Hungarian government has also indicated plans to maintain price controls on selected essential goods, which could help contain cost pressures for consumers.

The latest data will be closely watched by policymakers as they assess the appropriate pace of monetary policy adjustments and the outlook for domestic demand recovery in the second half of the year.

Source: KSH, TE and Bloomberg

AXI IMMO appoints Danuta Dzierżak as Business Development Director

AXI IMMO, a leading Polish advisory firm in the commercial real estate sector, has appointed Danuta Dzierżak as Business Development Director. In this role, she will focus on expanding the firm’s business activities, acquiring new clients, and managing relationships with key partners both domestically and internationally.

Dzierżak has 17 years of experience in the commercial real estate industry, having worked with international investment funds, advisory firms, and developers from Poland and abroad. Her previous responsibilities have included building client relationships, expanding advisory services in industrial and logistics leasing, and coordinating collaboration across departments. She holds a degree from Cracow University of Economics and a Certified Commercial Investment Member (CCIM) designation.

Renata Osiecka, Managing Partner at AXI IMMO, noted that Dzierżak’s return will support the firm’s efforts to enhance its advisory services and strengthen cooperation across business lines.

Commenting on her appointment, Dzierżak said she sees opportunities to apply her expertise and foster collaboration within the company, as AXI IMMO continues to develop across various sectors of the commercial real estate market.

Divestment of Kaktus Towers strengthens position for new investments

Swedish investment company Catella has successfully completed the sale of Kaktus Towers in Copenhagen, providing a significant boost to its cash reserves and paving the way for new investment opportunities in Europe’s recovering property market. The divestment, finalized last week, comes as the company navigates continued uncertainty in the global economy and early signs of improvement in the European real estate sector.

Catella announced that it signed an agreement on 1 May with Quantum, acting on behalf of a client, for the sale of Kaktus Towers. The transaction is based on an underlying property value of approximately SEK 2.1 billion and is expected to contribute nearly SEK 260 million to Catella’s operating profit after transaction costs. Completion is anticipated during the second quarter.

“We are pleased to have reached an agreement to divest Kaktus Towers at attractive levels for both seller and buyer,” said Mattias Persson, Group Chief Economist at Catella. “This iconic, award-winning project reflects our strategy of creating high-quality assets. The sale strengthens our financial position and enables us to pursue new, value-creating investments.”

The residential component of Kaktus Towers, completed in September 2022, is fully leased and has achieved 15 percent rental growth since opening, underscoring its market appeal.

Despite global economic uncertainty following the escalation of trade tensions earlier this year, Catella sees a cautiously improving outlook for European property. The European Central Bank’s recent interest rate cut and signals of further easing, combined with stabilizing inflation and improving credit conditions, are bolstering confidence in the market. First-quarter transaction volumes in Europe rose 4.3 percent year-on-year, Catella reported.

However, the company’s first-quarter results were affected by lower transaction-based income, weaker fund valuations, and restructuring costs, leading to an operating loss of SEK 44 million compared with a SEK 4 million profit in the same period last year. Adjusted for one-off factors, Catella said its underlying performance remains in line with expectations.

In the Principal Investments division, Catella maintained its focus on completing and selling development projects while evaluating new opportunities, including partnerships and mandates with institutional investors. The sale of Kaktus Towers aligns with this strategy and frees up capital for future investments. The company also highlighted its co-investment in the Vega residential project in Copenhagen, announced in April, where it is partnering with global investor Barings to develop 269 affordable apartments.

Catella’s Investment Management division reported SEK 148 billion in assets under management at the end of the first quarter, a slight decrease from year-end 2024 due to currency effects. Adjusted for these, assets grew by nearly SEK 2 billion, driven by new mandates. The recent merger of Catella’s fund management arms into Catella Investment Management GmbH is already delivering benefits, the company said, including recent acquisitions of logistics properties in France within its Catella Logistik Deutschland Plus fund, which closed at EUR 500 million in late 2024.

Looking ahead, Catella said it remains optimistic despite global economic headwinds. Interim CEO and President Mattias Persson emphasized the company’s strong liquidity and capital base following the Kaktus Towers sale, positioning it to seize opportunities as the market improves. Persson also welcomed incoming CEO Rikke Lykke, who will assume leadership in August.

“Our strategy is clear: to grow assets under management, enhance recurring income, and create long-term shareholder value,” Persson said. “With a strengthened financial position, we are well equipped to make new investments, develop projects, and expand mandates across Europe’s property markets.”

Swedbank: Tariffs and uncertainty set to slow Swedish economy

Higher-than-expected US tariffs and growing global uncertainty are set to weigh on the Swedish economy, delaying its recovery and dampening exports, according to Swedbank’s latest Economic Outlook. The report warns that exports will decline, investments will be postponed, and consumer spending will remain subdued in the near term. However, more expansive economic policies are expected to support stronger growth from 2026 onward.

The introduction of unexpectedly steep US tariffs, combined with unpredictable economic policy from Washington, has heightened financial market volatility and added to global uncertainty. Swedbank notes that even the status of US assets as a safe haven is now being questioned amid the turbulence.

“Sweden, with its dependence on exports, will naturally be impacted by these circumstances. Swedish goods exports will be negatively affected by higher tariffs and weaker global growth. The high level of uncertainty will cause firms to postpone investments,” said Mattias Persson, Swedbank’s Group Chief Economist.

Household sentiment has also taken a hit. Swedish households have grown increasingly pessimistic about their financial prospects and the broader economy, leading to more cautious spending habits despite a modest recovery in real wages after recent inflationary pressures. “The high level of uncertainty, a weak labour market, and rapid changes in financial markets are causing households to hold back on their spending once again,” Persson explained. He added that savings rates are reaching record highs, and housing prices are expected to stagnate this year before rising 5 percent in 2026.

The labour market is also expected to struggle, with unemployment likely to remain elevated through 2025. Swedbank forecasts a slight decline in employment in the coming quarter as firms adjust to weaker global conditions. “Employment is expected to continue to grow in the defence industry and public sector, but greater caution on the part of households and companies will delay the labour market recovery until next year in most other sectors,” Persson said.

As inflationary pressures ease, Swedish economic policy is expected to shift toward supporting growth. The Riksbank is forecast to lower its policy rate by 0.25 percentage points in both June and September, with further fiscal stimulus measures also on the horizon. Swedbank predicts reforms totaling SEK 60 billion next year, with much of the spending targeted toward households through income tax cuts and higher child benefits. “Despite the tariffs, inflationary pressure will be low in Sweden as the krona strengthens and global commodity prices fall. To support the economy, the Riksbank needs to cut rates,” Persson noted.

Despite the challenges, Swedbank maintains a relatively positive outlook for Sweden’s economy, projecting GDP growth of 1.5 percent this year and 2.5 percent in 2026. In comparison, the euro area is expected to see growth of just under 1 percent in both years. “There’s an underlying strength in the Swedish economy, and despite all the uncertainty, it appears to be performing relatively well,” Persson said. He emphasized that Sweden’s low public debt-to-GDP ratio gives policymakers room to invest in defence and provide targeted support if economic conditions worsen.

AI now integral to city and infrastructure design, global survey finds

More than a third of engineers, architects, and city planners worldwide are now using artificial intelligence (AI) every day to design cities and infrastructure, according to a new global survey commissioned by sustainable development consultancy Arup.

The research highlights the rapid adoption of AI across the built environment sector, with 36% of professionals relying on AI daily and over 80% using it at least weekly. The findings show that AI’s role in shaping the urban landscape extends well beyond popular tools like chatbots or large language models. Engineers and architects are increasingly using advanced AI solutions such as large-scale simulations, evolutionary algorithms, and science-based AI to support project design, digital twins, urban planning, and efforts to boost sustainability and energy efficiency.

The survey, conducted across 10 countries—including Australia, Brazil, China, Germany, India, Indonesia, Nigeria, Singapore, the UK, and the US—reveals overwhelmingly positive attitudes toward AI adoption. Nearly two-thirds of respondents (61%) view AI as an opportunity, while only 11% see it as a threat to jobs. Many believe AI can help deliver projects on time and within budget, while also supporting responses to the climate and biodiversity crises by reducing waste, developing sustainable materials, and optimizing renewable energy use.

At the same time, 91% of respondents agree that clear ethical guidelines for AI in the built environment are essential. However, around half expressed concern about the dominance of global tech companies in the development of AI tools.

Arup commissioned the research to better understand how AI is already transforming city and infrastructure design and to encourage greater focus on leveraging AI to decarbonize the sector and restore nature. The consultancy argues that channeling even a fraction of the $252 billion invested globally in AI last year into AI tools tailored to sustainability challenges could help reshape cities and infrastructure to deliver more resilient, prosperous, and livable environments.

“AI is already making a significant impact—empowering what we call ‘Total Design’ and helping deliver everything from renewable energy infrastructure to transport systems,” said Will Cavendish, Arup’s Global Digital Services Leader and former strategist at DeepMind. “This survey shows the scale and pace of AI adoption in designing cities and infrastructure, cutting through the noise around large language models to highlight the potential of advanced AI systems to improve people’s lives.”

Arup is already deploying AI-powered tools to develop nature-based solutions aimed at protecting communities from extreme heat and floods, and to extend the lifespan of critical infrastructure such as offshore wind turbines and bridges—reducing both costs and carbon emissions in the process.

Cavendish emphasized the need for greater investment in AI systems that deliver tangible environmental and social benefits. “While global investment in AI is enormous, it often misses the most impactful areas. Our industry needs to focus more resources on developing AI that addresses real-world challenges, from sustainable materials to global biodiversity,” he said.

Global trade in counterfeit goods reaches USD 467 billion

The global trade in counterfeit goods continues to pose significant risks to economies, consumers, and supply chains, according to a new report released by the Organisation for Economic Co-operation and Development (OECD) and the European Union Intellectual Property Office (EUIPO). The report estimates that counterfeit goods accounted for USD 467 billion in global trade in 2021, underscoring the scale and persistence of the problem.

The findings, published in Mapping Global Trade in Fakes 2025: Global Trends and Enforcement Challenges, mark the fourth joint study by the OECD and EUIPO. The report provides a detailed analysis of counterfeit trade patterns and offers recommendations to help policymakers safeguard consumers, protect legitimate businesses, and maintain the integrity of global trade.

According to the study, clothing, footwear, and leather goods remained the most targeted product categories, making up 62 percent of all counterfeit goods seized. However, counterfeiters are increasingly expanding their reach into a wider range of products that touch nearly every aspect of daily life. The report warns of the growing prevalence of hazardous counterfeit items, including automotive parts, medicines, cosmetics, toys, and food, which pose serious risks to consumer health and safety.

“Illicit trade threatens public safety, undermines intellectual property rights, and hampers economic growth, and the risks could increase as counterfeiters leverage new technologies and techniques to avoid detection,” said OECD Secretary-General Mathias Cormann. He emphasized the need for authorities to adopt new tools and enhance cooperation and information sharing to counter the evolving tactics of counterfeit networks.

The report identifies China as the leading source of counterfeit goods, accounting for 45 percent of all reported seizures in 2021. However, it also notes that counterfeit production and distribution involve a growing number of countries across Asia, the Middle East, and Latin America.

In addition to mapping the main sources, the report highlights changes in trade routes and distribution methods. Counterfeiters are increasingly exploiting international waterways and adopting localization strategies, such as shipping unassembled parts or packaging to be assembled closer to destination markets. This approach complicates detection and enforcement efforts.

Counterfeit networks are also adapting to consumer demand and market trends, quickly producing fake versions of popular products and using online platforms to advertise and sell them. The study reveals that around 65 percent of counterfeit seizures involve small parcels and mail, indicating a shift toward distribution channels that prioritize speed, convenience, and lower risk of inspection.

To address these challenges, the report calls for enhanced monitoring and a more coordinated global response. It recommends real-time information sharing among customs authorities, police forces, financial intelligence units, and market surveillance bodies. Stronger collaboration with trade intermediaries, postal and shipping services, free trade zones, and logistics firms is also essential to prevent the misuse of legitimate networks for illicit trade.

The OECD and EUIPO urge governments and industry stakeholders to work together to close enforcement gaps and to protect consumers and businesses from the growing threat of counterfeit goods infiltrating global markets.

Polish real estate developers highlight legal reforms needed for faster housing development

A survey conducted by the real estate website dompress.pl asked development companies which legislative areas should be simplified to accelerate housing construction and which regulatory changes would most benefit the sector and boost investment activity.

Karol Dzięcioł, member of the management board of Develia
In view of the complex and time-consuming administrative procedures, especially with regard to obtaining building permits and adapting projects to local spatial development plans, simplifying and speeding up proceedings could significantly improve the implementation of investments. It is crucial to shorten the time needed to obtain individual decisions, including environmental decisions, zoning decisions and building permits, and to speed up consultations between public administration bodies.

The amendment to the Act on Spatial Planning and Development may also have an impact on improving the functioning of the real estate market. The introduction of integrated investment plans may in many cases unlock the investment potential of land, although this is likely to entail higher costs for developers. In the longer term, the so-called supply act may also contribute to improving land availability. We welcome the attempt to make the parking space requirements more realistic and to transfer greater powers in this area to municipalities.

Damian Tomasik, President of the Management Board of Alter Investment
In response to the government’s deregulation initiative, from the perspective of the residential construction market, it would be crucial to simplify several areas of legislation that currently slow down the investment process and generate unnecessary costs, such as planning procedures (local zoning plans and building permits). The current spatial planning system is time-consuming and inflexible. Simplifying and speeding up the procedures for adopting local spatial development plans and making the deadlines for obtaining building permits more realistic would be crucial. The possibility of phasing plans and using digital tools in their creation would significantly improve the dynamics of investment.

The process of obtaining building permits also needs to be reformed. Many investments are delayed due to a long and unpredictable administrative process. Introducing the principle of ‘tacit consent’ in situations where authorities fail to meet statutory deadlines and digitising the entire process could significantly improve efficiency.
Another important change would be to reduce the number of required approvals and opinions. Currently, investors are required to obtain a number of opinions, which often duplicate each other or are of marginal importance for the security of the investment. Limiting these obligations to key authorities and introducing a single administrative position (one-stop shop) could shorten project preparation by many months.

Simplifications should also be introduced with regard to the conversion of agricultural and forest land for residential purposes. Overly restrictive regulations on the de-agriculturalisation of land, even within city limits, are hindering urban development. The introduction of clear criteria for the automatic conversion of land, especially within agglomerations, would be a breakthrough.

In summary, we need deregulation that will make the investment path more realistic and faster by eliminating unnecessary bureaucratic barriers. As a member of Corporate Connection, we are actively involved in deregulation, which does not mean giving up control, but focusing on what really affects the quality and safety of construction, rather than on procedures that are an end in themselves.

Joanna Chojecka, Sales and Marketing Director for Warsaw and Wrocław at Robyg Group
Deregulation in residential construction is one of the key areas that can significantly accelerate the development of the sector and improve the availability of housing. Current regulations are often too complex, time-consuming and inflexible, leading to delays, increased costs and a reduction in the supply of new investments. Key areas for change include simplifying building permit procedures, reforming zoning decisions, digitising the investment process, reducing mandatory consultations and speeding up environmental procedures.

Currently, the process of obtaining a permit is lengthy and requires numerous attachments and opinions. These procedures should certainly be accelerated and simplified. A reform of zoning conditions (so-called ‘wuzetek’) could also be introduced. The lack of a local plan means that a zoning decision must be obtained, which significantly lengthens the investment process and creates a risk of discretionary decisions. Deadlines for issuing decisions (e.g. 30 days) and standardisation of the rules for issuing them could be introduced.

In addition, Rafał Brzoska’s SprawdzaMY initiative has already proposed interesting solutions, such as the digitisation of land and mortgage registers. This would mean faster access and less bureaucracy. This would significantly reduce the waiting time for entries, which currently takes many months. Thanks to the digitisation of the process, bank customers will be able to finalise their property purchases and obtain mortgages more quickly, while banks will optimise their collateral management. Digital document circulation will reduce the number of errors, relieve the burden on the courts and reduce archiving costs.

It is also important to reduce bridge insurance for customers. Bridge insurance is additional security required by the bank until the mortgage is entered in the land and mortgage register. During this period, the customer incurs higher costs, most often in the form of an increased loan margin. Although this is an element of almost every mortgage agreement, there are effective ways to reduce this burden. Such solutions can be implemented by the government by introducing electronic entries in land and mortgage registers and speeding up court proceedings. On the other hand, banks have a number of options to prepare attractive offers for their customers.

Magda Kwiatkowska-Świstak, legal advisor, Ronson Development
The government’s announcements of deregulation in the economy are a step in the right direction. The housing construction sector has been struggling for years with numerous administrative and regulatory barriers that significantly delay the investment process and generate additional costs.

One of the most pressing issues requiring legislative intervention is the lack of regulations governing the takeover of roads built by developers by municipalities. Currently, investors incur huge costs for the construction of road infrastructure, yet they are often refused takeover by local authorities. Clear regulations are needed to oblige municipalities to take over roads that meet specific technical standards, with a specific mandatory deadline for acceptance, e.g. within six months of the submission of the application. This requires systemic regulation of the rules for financing accompanying infrastructure, roads, pavements, lighting and water and sewage networks.

It is worth considering the introduction of an infrastructure fund co-financed by municipalities and investors, which would allow costs to be distributed more proportionally and fairly. This would eliminate discretionary and arbitrary decisions by officials, ensure greater predictability of costs, faster procedures and maintain the financial liquidity of investors, especially smaller ones.

Another barrier is the lengthy administrative procedures involved in obtaining building permits. In the largest cities, the waiting time is already 2-3 years, which significantly increases investment costs and discourages investors. The statutory deadlines for decision-making authorities should be shortened, but officials should also be made genuinely accountable for exceeding these deadlines. Currently, sanctions are illusory and investors have no effective tools to enforce the efficiency of proceedings.

Another major problem is the delay in making entries in land and mortgage registers, especially in large cities. Entries that are important for the implementation of investments, such as the entry of ownership rights or the division or consolidation of real estate, currently take up to a year. This often blocks further stages of investment and the transfer of premises to buyers.

After the 2023 amendment introducing general plans, many investors will find themselves in limbo because municipalities will not be able to adopt them in time, and decisions on development conditions are impossible to obtain in many places during this transition period. In practice, this means a block on investments. Transitional provisions should therefore be introduced to guarantee the possibility of obtaining a development permit for a specified period, regardless of the adoption of the general plan.

In the case of larger investments, the environmental procedure, which can take longer than the design of the building itself, is a problem for investors. It is therefore necessary to allow combined environmental and construction proceedings for investments meeting certain criteria, e.g. within city limits, in areas with infrastructure, and to introduce a ‘fast track’ for investments of local importance with a simplified environmental impact assessment and a maximum deadline for issuing decisions.

If the government really wants to stimulate the housing market, it is necessary to combine deregulation with bold procedural and infrastructural reforms. Simply reducing the number of documents is not enough. We need efficient administration, predictable deadlines and clear rules for cooperation between developers and municipalities.

Photo: Do Wilgi, Matexi Polska

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