Poland land market faces rising costs for developers and gardeners

The Polish real estate and allotment garden sectors are facing significant cost pressures. The Polish Allotment Garden Association (PZD) has petitioned the government for legislative intervention following a trend of municipalities increasing perpetual usufruct fees. To address budget deficits, local governments in areas such as Grudziądz, Toruń, and Wieliczka have begun applying maximum fees of up to 3 percent of land value. The PZD warns that in major cities like Warsaw, Kraków, and Łódź, these increases could raise annual maintenance costs by over 1,000 PLN, requesting a statutory limit of 0.1 percent.

Simultaneously, the residential land market is experiencing rapid price growth driven by declining supply and rising demand. According to a report by Otodom and Hectares, land prices in Warsaw have reached approximately 900 PLN per square meter, while Kraków follows at around 600 PLN per square meter. The report indicates that demand for building plots has risen by 21 percent while supply has fallen by 11 percent, creating intense price pressure, particularly in segments with clear planning status.