Developers reassess plans as building permits decline and project timelines shift

The number of building permits issued and housing projects started is declining, raising questions about whether developers are adjusting their plans and delaying the completion of new investments, and if so, why; the article includes comments from companies addressing these issues and provides insight into which projects are expected to enter the market later this year

Zbigniew Juroszek, President of the Management Board of Atal
We are constantly launching new projects or subsequent stages of existing housing estates, with several investments planned for this year. Our investment activity results from the scale on which we operate in the eight largest Polish markets and from our strategy. It assumes an intensified market presence at the expense of smaller and medium-sized players who have not launched or started any new investments for two years. This is an opportunity for us to increase our market share. We are consciously preparing for the recovery, which we believe will begin in the second half of this year and last until 2026-2027.

The launch of many new development projects in the last several months was also due to the availability of subcontractors and construction material prices. This protects us from the cost impact that may occur in connection with the launch of the National Recovery Plan and other EU funds, as well as the start of large infrastructure projects.

Tomasz Kaleta, Managing Director for Sales and Marketing at Develia
We are launching all projects on schedule, and some are even ahead of schedule. Any delays are due to prolonged administrative procedures.

This year, we plan to expand our offer in Gdańsk by launching the next stage of the Południe Vita housing estate in Gdańsk and two completely new investments. We will also offer our customers the next stages of projects in Warsaw's Bemowo district and the Central Park housing estate in Krakow. Our goal for this year is to launch a total of 3,100-3,300 apartments and commence construction.

Renata Mc Cabe-Kudla, Country Manager at Grupo Lar Polska
The time needed to obtain a building permit in Warsaw has increased significantly in recent years, due to environmental decisions, road agreements and other factors related to, for example, the infrastructure accompanying the investment. This has a significant impact on the number of building permits issued. We believe that the processing of building permits will accelerate in the coming years, which will allow us to increase our offer to customers. We plan to launch one new investment this year and at least three next year.

Marcin Malka, President of the Management Board of Real Management S.A.
The single-family home market is not as susceptible to economic changes, but of course we feel the indirect impact of the cooling mood in the entire housing sector. This affects project management, but does not cause changes in schedules or start dates for new investments. From our perspective, the length of the investment preparation process and the associated extensive bureaucracy remain a greater challenge. We are currently in the second stage of the Neo Natolin single-family housing estate. We are also preparing further stages comprising 130 houses with a total living area of 30,000 sq m.

Joanna Chojecka, Sales and Marketing Director for Warsaw and Wrocław at the Robyg Group
According to available market data, there has been a noticeable decline in the number of building permits issued and new investments launched. This is due to, among other things, uncertainty related to construction costs, rising material prices and limited access to financing on the part of buyers, especially in the last dozen or so months, when the mortgage market was under considerable pressure.

However, we take a long-term and strategic approach to investment planning. We are a large, stable organisation with experience and resources that allow us to carry out new projects even in less favourable market conditions. Instead of halting development, we are adapting our activities to the changing reality. We analyse local demand, manage schedules flexibly and respond to market signals.
In 2025, we plan to launch further residential investments, both in Warsaw and in other large cities. Our actions are consistent with the assumption that, despite temporary slowdowns, the housing deficit in Poland, especially in the largest agglomerations, remains significant. This means that the demand for new flats will not disappear, but will actually grow.

When deciding to launch new projects, we are always guided not only by profitability analysis, but also by the needs of future residents. The investments we are planning today will respond not only to demand, but also to new expectations, such as sustainable development, energy efficiency, access to green spaces and extensive social infrastructure.

In total, in 2025, the TAG Group in Poland will have approximately 7,300 residential and commercial units under construction. The Group's portfolio of rental apartments amounted to over 3,350 units. Currently, ROBYG has approximately 1,900 units on offer. In the first quarter of 2025 alone, new stages comprising 1,100 apartments were added to the offer, including in the following investments: Modern City and Modern Life in Warsaw, Początek Piątkowo in Poznań, and Leszczyńskich and Szumilas in Gdańsk. In addition, we have building permits for approximately 2,100 units.

Andrzej Gutowski, Sales Director, Ronson Development
We are observing that in the current market conditions, developers are delaying the start dates of new investments. The process of obtaining the required permits and administrative decisions is not getting any shorter – on the contrary, it is often getting longer. We have been drawing attention to this problem for a long time. The lack of real systemic measures, such as simplifying administrative procedures or speeding up the issuance of decisions, significantly limits developers' ability to respond quickly to market needs.

Nevertheless, there are first signs of recovery, including movements in interest rates, which may have a positive impact on investment activity in the medium term. We expect that the turn of 2025 and 2026 will bring greater momentum to the market, provided that the scale of activities is adjusted to the absorption capacity of individual local markets.

Despite the difficult conditions, we plan to launch new projects. In Warsaw, we are continuing the Zielono Mi II investment and starting new projects in Bemowo and Białołęka. In Wrocław, we are preparing to launch a new project, while in Poznań and Szczecin we are developing the next stages of existing investments.

Mariusz Gajżewski, Head of Sales, Marketing and Communication, BPI Real Estate Poland
We do not intend to change our plans to continue our operations in the residential real estate market. We will focus primarily on the implementation of premium and high-standard investments, which, thanks to a strong emphasis on the quality of finish, excellent location and high energy efficiency, remain the preferred choice among buyers and are more resistant to fluctuations in demand. We are actively working on acquiring new plots for future investments in Warsaw, where we are continuing the implementation of our latest project, PianoForte, near Morskie Oko Park and Łazienki Królewskie. We are also preparing to launch a new multi-stage project in the Tri-City later this year, which, depending on the stage of development, will have mixed functions and offer both high-standard and premium premises.

Damian Tomasik, President of the Management Board of Alter Investment
We are currently observing a decline in the number of building permits issued and residential projects launched. This is primarily due to high construction costs and restrictions on access to mortgage loans. However, our strategy is to actively seek new, attractive locations and flexibly adjust our investment schedules to the real needs of the market.

We have recently finalised the purchase of land in the centre of Władysławowo. We plan to launch this land on the market before the summer holidays. It is an attractive proposition for both investors and individual customers looking for unique locations by the sea. At the same time, we are preparing another project – a building for institutional rental (PRS) in Gdańsk, in an excellent location at the new tram terminus on Warszawska Street. This investment responds to the growing demand for modern rental premises in the city's dynamically developing districts.

Despite market challenges, we are maintaining our investment activity and responding flexibly to the changing economic environment. We believe that this will enable us to keep our offer attractive to a wide range of customers.

Jacek Bugajski, Project Development Director at Archicom
Despite the challenges, we are consistently implementing our growth strategy and launching new projects. This year, we have already started sales of further stages of the Modern Mokotów housing estate in Warsaw and Zenit in Łódź, as well as new projects such as Gutenberg Apartments as part of Towarowa 22 in Warsaw, the 29L investment in Krakow and Esencja II in Poznań.

We constantly analyse local demand and the macroeconomic environment, and we make investment decisions taking into account the potential of a given market. We have an extensive land bank and strong financial backing, which allows us to remain ready to launch new investments. We adjust the pace of their launch to the realities, not only of the market, but also of the administrative environment. We are observing a significant lengthening of procedures, such as obtaining building permits, which is affecting implementation schedules across the entire industry.

Source: dompress.pl
Photo: Bukowinska Mokotow - Matexi Polska