The Impact of the General Plan on Local Zoning Plans (MPZP) and Building Permits – What Investors, Property Owners, and WawelDom Real Estate Clients Need to Know

Introduction: A Revolution in Spatial Planning After 2026

The General Plan (Plan Ogólny) is the most significant change in Polish zoning law in decades. As WawelDom Real Estate Agency in Krakow, specializing in investment advisory and property transactions, we present a comprehensive guide explaining:

• What the General Plan is and why it’s revolutionary.

• How it affects Local Zoning Plans (MPZP).

• Changes in Building Permit (WZ) procedures.

• Consequences for investors and property owners.

• How WawelDom assists clients in navigating these changes.

1. The General Plan – The Foundation of the New Spatial Order

1.1 Definition and Legal Status

The General Plan is a legally binding local zoning act that will replace the current Study of Conditions and Directions of Spatial Development starting January 1, 2026. According to the July 15, 2022, amendment to the Spatial Planning Act:

• Mandatory for all municipalities

• Supreme planning document

• No MPZP or WZ can be issued without compliance

1.2 Key Differences from the Current Study

1.3 Implementation Timeline

• 2023-2025 – Transition period for municipalities

• 01.01.2026 – General Plans become mandatory

• After 2025 – No new MPZP or WZ without a General Plan

2. Impact of the General Plan on Local Zoning Plans (MPZP)

2.1 The Principle of Supremacy

New MPZPs must fully comply with the General Plan. This means:

• Non-compliant MPZPs will be invalid

• Conflicting provisions automatically repealed

• Existing MPZPs must be adjusted within 5 years

2.2 Key Compliance Requirements

The General Plan will define for each zone:

1. Primary land use (residential, commercial, industrial)

2. Building parameters (density, height, FAR)

3. Infrastructure standards (schools, roads, utilities)

4. Environmental requirements (green space ratios)

2.3 Practical Consequences for Investors

• Mandatory verification of MPZP compliance before land purchase

• Risk of value loss for properties in non-compliant zones

• Legal challenges against non-compliant decisions

WawelDom Case Study: A plot in Krakow zoned for commercial use under MPZP but designated as green space in the General Plan lost 70% of its value.

3. The Revolution in Building Permits (WZ)

3.1 New Restrictions on WZ Issuance

Three major changes:

1. Only in "infill development areas" designated in the General Plan

2. Infrastructure must physically exist (not just planned)

3. Ban on development of prime agricultural land (classes I-III) outside cities

3.2 Definition of "Infill Development Area"

To qualify for a WZ, a plot must meet all of the following:

• At least 5 existing buildings within 100m

• Functional consistency with surroundings

• Compliance with zone profile in the General Plan

• Meeting accessibility standards

3.3 New Infrastructure Standards

The following must already exist at the time of WZ issuance:

• Access roads of appropriate class

• Schools/kindergartens within set distances

• Utilities (water, electricity, sewage)

WawelDom Analysis: 30% of plots in West Krakow may lose development rights due to lack of kindergartens within 800m.

4. Consequences for the Real Estate Market & Investors

4.1 Expected Market Effects

• Price increases in designated infill areas

• Value drops for excluded properties

• Market consolidation around compliant zones

• Growing demand for urban planning expertise

4.2 New Investment Strategies

1. Focus on already urbanized areas

2. Strategic land banking in future development zones

3. Active participation in municipal planning processes

4.3 Risks for Current Owners

• Loss of development rights for plots without MPZP

• Need to adapt existing projects

• Potential neighbor disputes over zoning changes

5. How WawelDom Real Estate Supports Clients

5.1 Comprehensive Advisory Services

1. Compliance analysis with the General Plan

2. 10-year value forecasting

3. Investment optimization strategies

5.2 WawelDom's Specialized Tools

• Database of General Plans & MPZPs

• Legal change monitoring system

• Network of urban planners & lawyers

5.3 Case Study:  Investment

• Challenge: 2,000m² plot without MPZP

• WawelDom's Action: Identified as future infill zone, lobbied for plan amendments

• Result: 40% value increase in 18 months

6. Practical Advice for Investors & Owners

6.1 How to Prepare?

1. Order a property audit against the General Plan

2. Track progress of your municipality's plan

3. Participate in public consultations

4. Reconsider strategies for high-risk plots

6.2 Common Mistakes to Avoid

• Buying land without General Plan verification

• Relying solely on current MPZPs

• Ignoring public consultations

• Delaying investment decisions

Conclusion: A New Era in Spatial Planning

The General Plan is the biggest real estate market shift in 10 years. As WawelDom Real Estate in Krakow, we recommend:

1. Immediate verification of your properties' status

2. Active participation in planning processes

3. Professional advisory for key decisions

Contact us at www.waweldom.pl to:

• Get a personalized property analysis

• Learn investment optimization strategies

• Receive expert support in planning procedures

WawelDom – Your Trusted Real Estate Partner in the New Planning Reality!