PMR Construction Insight: Poland
The amended building law eliminating the requirement for investors to secure a building permit for the construction or redevelopment of single-family houses came into force on 29 June 2015. The revised regulations will streamline the construction process by removing certain legal and procedural restrictions. Investors have been exempted from the obligation to secure a building permit for selected constructions, including single-family houses. The buildings include structures whose impact area does not extend beyond the boundaries of the lot on which the building has been designed and does not cause nuisance to the neighbours.
Almost €13.1bn will be spent the extension of the EU transport network in the coming years. The funds will come from the Connecting Europe facility, of which Poland is one of the biggest beneficiaries, PAP news agency reported.
EU Commissioner for transport Violeta Bulc said that 276 projects serving citizens and businesses by upgrading infrastructure and removing existing transport bottlenecks were selected from the pool of 700 applications. The selected projects implement the strategy of developing transport corridors across the European continent. The EU funding will be used for various initiatives, including Rail Baltica, i.e. a railway connection between Warsaw, Kaunas, Riga, Tallinn and Helsinki.
The Sejm passed the Restructuring Law, which features provisions on restructuring measures applicable to property developers running into financial trouble. The regulations are expected to reduce the risk of bankruptcy and present a set of the rights of developers clients, RynekPierwotny.pl reported.
Confederation Lewiatan's representatives say that fees for regularisation of unlawful constructions stipulated in the draft building code are too high, Rzeczpospolita reported.
The experts hold that increasing the level of the fee for regularisation of unlawful constructions to 30% of the property's value will hamper the regularisation process and stand in the way of sorting out the legal status of real properties (e.g. in the event of ownership changes). Currently, the fees are calculated using an algorithm set forth in the act taking into consideration the category of building structure. The draft building code stipulates that the fee is linked to the property's value and amounts to 30% of the said amount, which in many cases will mean a significant increase. However, it should be noted that the necessity to regularise illegal construction does not always result from the investor's wilful decision - it is frequently the effect of an interpretation of the legal status of a project carried out in good faith.
The amended building law eliminating the requirement for investors to secure a building permit for the construction or redevelopment of single-family houses came into force on 29 June 2015.
The supervisory board of Polimex- Mostostal has issued a positive opinion of the revised operating strategy for 2016- 2020. The strategy had been first approved by the company's management board, according to a communique released by the company.
The Mirbud group completed the acquisition of the Expo Arena fair and conference centre in Ostroda. Mirbud acquired an interest in Arena Ostroda, which is the owner of the centre, in a PLN 8.5m (€2m) deal, Parkiet reported.
Globe Trade Centre (GTC) completed the restructuring of loan agreements of its Romanian subsidiaries with the European Bank for Reconstruction and Development (EBRD).
MLP Group, a property developer operating in the warehouse space market, expects that it will conclude leases for 100,000 m2 of logistics space in 2015. The company also intends to launch the construction of new logistics parks, PAP news agency reported.
Layetana Developments Polska will team up with Aventicum, a private equity investor, to pursue residential and commercial development projects.
Property developers reported a significant increase in sales of flats in H1 2015. Polnord and Atal posted a surge in sales of flats over the corresponding period of the previous year.
The Robyg group steadily solidifies its position in the housing markets of Warsaw and Gdansk and builds up its land bank, Parkiet reported.
The Pinnacle group plans to carry out investment projects, including shopping centres, in Poland, Propertynews.pl reported.
Pfleiderer Grajewo, which specialises in the production of furniture boards, worktops and laminates, intends to acquire the Germany-based parent undertaking by way of the issue of shares with pre-emptive rights waived.
Average salaries in Krakow are significantly higher than in Lodz, but prospective home buyers in the latter city can save enough money to buy a dwelling more easily.
The volume of completed dwellings on offer in Warsaw has fallen. In total, the developers have 17,680 units available for sale, including 3,980 completed dwellings, Rzeczpospolita reported.
A high level of competition in the housing market and the growing expectations of clients have encouraged property developers to take greater care of prospective buyers and offer top-quality services. These efforts show in the statistics: 84% of clients have a positive view of cooperation with the developer, according to a survey carried out by TNS Polska for Otodom.pl.
The large number of office buildings under construction in Warsaw drives down rents for office space, Rzeczpospolita reported. The market is now tenant-driven.
The market of high street retail properties has become more and more important over past years, though its growth is adversely affected by a number of issues, includinglegal concerns, Puls Biznesu reported.
The Ministry of Infrastructure and Development has prepared a draft resolution aimed at transferring state funds to local road renovation projects. In 2016-2020, the local authorities will receive PLN 5.2bn (€1.3bn) from the Ministry, while the communes will contribute the same amount out of their own pockets, Puls Biznesu reported.
Around PLN 9bn (€2.2bn) will be spent on railway infrastructure in the Slaskie voivodship in 2014-2020, with a big chunk of the planned expenditure to be committed to the development of freight lines, Maria Wasiak, Minister of Infrastructure and Development, announced.
Storage of sewage sludge will not be permitted as of January 2016. Currently, up to one-third of sewage sludge is put in storage. The issue can be resolved by local government investment projects co-financed by the European Union, according to a statement released by the Chamber of Commerce Polish Waterworks (IGWP) and reported by PAP news agency.
The Polish Power Transmission and Distribution Association (PTPiREE) will prepare a request to the Sejm to enlarge the set of projects presented in the bill on investments in transmission networks to include projects involving the construction of 110 kV distribution lines, wnp.pl reported.
Cogeneration systems which generate both electricity and heat are considered to be one of the ways to facilitate the implementation of the EU's power and climate policies until 2030 because they cut emissions of carbon dioxide by 30%. Such are the conclusions of the debate “The future of cogeneration in Poland in the context of the European climate policy” which was held in Warsaw.
The exploitation of deposits of construction aggregates continues in Poland, while the access to new deposits is not properly secured in spatial planning, according to a communique released by the authorities of the Polish Aggregates Producers Association (PZPK) reported by wnp.pl.
Polish roofing membrane manufacturers sell significantly less roofing membrane materials than they did a year ago and none of them uses more than 70% of production capacity, Puls Biznesu reported.
The first half of 2015 saw limited construction market growth and the consumption of cement below expectations. The industry expected that the cement market would expand by 5-6% to approx. 16 million tonnes in 2016, but the projections are unlikely to come true and the 2015 output will be roughly on par with last year's score.
The National Fund for Environmental Protection and Water Management (NFOSiGW) plans to launch in 2015 a scheme to support thermal-upgrade projects for single-family houses, whose value will total PLN 300m (€70m), Puls Biznesu reported.