Real estate and construction The Effects of Changes in the Spatial Planning and Development Act – Is a Construction Paralysis Looming?
The amended Spatial Planning and Development Act has been in force for over a year. In this article, we present the main changes introduced by the amendment, examine how various entities are coping with them, and discuss the potential impacts.
1. The General Plan
The primary objective of the Act is to simplify, accelerate, and standardize spatial planning procedures in municipalities. One of the key changes is the introduction of a new planning instrument, the General Municipal Plan , which will replace the existing Study of Conditions and Directions for Spatial Development.
Unlike the Study, the General Plan will be a local law instrument, meaning it will be a binding (universally applicable) document for a given municipality. The General Plan is intended to be simpler and devoid of certain informational elements. It will cover the entire municipality and serve as the basis for adopting local plans and issuing zoning and land use decisions.
2. Construction Paralysis – What About Investments in 2026?
Municipalities are required to adopt General Plans by the end of 2025. This requirement has faced criticism from experts and local government officials. In our view as well, this deadline may prove too short. Municipalities warn that the statutory deadline is unrealistic. What could the consequences be? The most significant concern for businesses is the risk of investment and construction paralysis.
As of January 1, 2026, zoning decisions will only be issued for areas covered by a General Plan. The General Plan will identify specific areas (so-called complementary development zones) where investments can proceed based on zoning decisions. Without a General Plan, it will not be possible to obtain zoning decisions. It is worth noting that most of the country’s land is not covered by any local plans.
Zoning and land use decisions will also undergo significant changes. Initially, the legislator intended to abolish this tool, but ultimately refrained from doing so. Instead, a time limit has been introduced. Previously indefinite, zoning decisions will now be valid for five years under the amended provisions.
3. New Instruments – The Integrated Investment Plan
The Act has also introduced an additional type of local spatial development plan – the Integrated Investment Plan . This plan will be adopted by a municipality at the request of an investor interested in establishing specific planning conditions to enable a particular investment.
Before adopting the plan, the municipality and the investor will sign a so-called urban agreement, under which the investor will commit to carrying out complementary investments (e.g., constructing schools, kindergartens, roads, or infrastructure networks). The investor may also agree to cover part or all of the costs associated with preparing the Integrated Investment Plan.
4. Other Changes
The amendment to the Act has introduced other significant changes, including:
- Allowing municipalities to designate areas where residential construction will not be permitted;
- Launching a free and publicly accessible Urban Register in 2026, which will publish documents created during the adoption of local plans and the results of public consultations;
- Requiring municipalities to prepare by 2026 development strategies that define, among other things, key elements of technical and social infrastructure, rules for locating public-purpose investments, and principles for locating energy-generating facilities with an installed capacity exceeding 500 kW.
5. Summary
The introduction of the General Plan as a local law instrument binding on all stakeholders – both investors and public authorities – appears to be a reasonable solution. The current Study of Conditions and Directions has proven insufficiently effective and has led to various interpretations. However, municipalities are expressing concerns about the short timeline for adopting the plans, particularly due to a shortage of urban planning specialists to prepare these documents.
Regarding zoning decisions after January 1, 2026, many uncertainties remain. Municipalities are likely to expedite the adoption of General Plans and local plans. While widespread investment paralysis is unlikely, investors with doubts should seriously consider initiating proceedings to obtain zoning decisions before this date.
The introduction of the Integrated Investment Plan and urban agreements is also a positive step, as these tools could help resolve disputes between municipalities and investors. Nonetheless, challenges such as the short deadlines and balancing often conflicting interests of municipalities, investors, and residents remain.
The scope of the Integrated Investment Plan is also set to expand, including renewable energy projects such as wind farms. Further developments in this area are eagerly awaited.
