The government plans to revamp regulations on the obligation to create parking spaces at residential developments.
Significant changes are planned regarding the obligation to create parking spaces at residential developments. According to the draft amendment to the Law on Special Solutions for Flood Recovery, two key provisions are expected to be repealed. The first dictates that the number of parking spaces must be at least 1.5 times the number of apartments in a development. The second provision applies to developments in downtown development areas and requires that the minimum number of parking spaces be equal to the number of apartments. These changes could significantly affect the way construction projects are planned and implemented in Poland, but only for selected developments - those carried out under the so-called developer lex.
Flexibility for local governments in the new regulations
One of the key points of the proposed changes is the possibility of giving local governments more flexibility in determining the number of parking spaces. Under the new regulations, the municipal council will be able to decide this number itself in urban planning standards, which is currently only possible in situations where the number of spaces is to be higher than that prescribed by law. The introduction of these changes is the result of requests made by both investors and local governments[1]. Current regulations often act as a barrier to the development of communal and social housing, as highlighted in the Regulatory Impact Assessment (RIA).
Will the new regulations affect housing prices?
From the beginning, developers have criticized the introduction of the mandatory creation of 1.5 parking spaces per apartment. They pointed out that the cost of building parking spaces is much higher than their price, and this affects the final cost of apartments. They also argued that the space allocated for parking spaces could be used for additional apartments, while meeting other building regulations.
The planned changes to the regulations could also give more freedom to local governments to adjust urban planning standards to local conditions. Currently, local governments can only increase the number of parking spaces, but the new regulations are expected to allow them full autonomy in this regard. In theory, this could increase the supply of housing, especially in densely populated areas, where any extra space is at a premium and will be very eagerly developed.
benefits and risks of the amendment
The media coverage is full of positive sentiment about the amendment - as it seems that the changes will benefit both developers and local governments, which are expected to gain greater control over urban planning. In theory, developers will be able to increase the number of apartments in projects, which should translate into an increase in the supply of housing units and a decrease in price. Local governments, on the other hand, will have the tools to better adjust the number of parking spaces to local needs and urban specifics.
This is all theoretical, because we know that, first, the changes apply only to a narrow range of developments built in the so-called developer lex, which is a fraction of existing developments. Second - for M buyers, a parking space (or lack thereof) is often a key element in choosing a property. The abolition of the index will also not translate into housing availability, as it is known that a huge proportion of them are bought for investment. The housing problem cannot be solved by a single erasure of the necessary amount of parking. It should also be borne in mind that while in the central areas of cities the abolition of the obligation will allow the completion of development, replaced in large cities by a network of public transport connections, in smaller towns it can be problematic, and the same is true of the periphery, where the problem of transport exclusion is considerable anyway.
In conclusion, the bill to amend the law will not revolutionize our market and will bring significant changes to the issue of parking spaces at selective housing developments - implemented under the housing speculative law. Introducing more flexibility in this area is primarily intended to facilitate construction, but it also raises questions about the real benefits for residents.
A key issue here will be the local governments' approach to determining the number of parking spaces. So far, implementations under the so-called " lex developer " measures have tended to be received positively, let's hope that the same will be true here. How these changes will affect the real estate market, however, we will only find out when the new regulations are fully implemented.
Magdalena Milert
[1] https://biznes.pap.pl/wiadomosci/nieruchomosci/rzad-chce-zmienic-specustawe-mieszkaniowa-liczbe-miejsc-parkingowych
