Warsaw's residential land market is undergoing a shift in how plots are valued. Alongside location and development potential, the ability to move efficiently through the investment process has become a key factor. Land with a clear planning status and a valid building permit is becoming increasingly valuable. The current market environment requires much greater selectivity and a thorough assessment of investment risk, says Damian Karkośiński, Investment and Acquisitions Specialist at Walter Herz.
According to Walter Herz analysis based on data from the General Office of Building Control (GUNB), the average time between submitting an application and obtaining a building permit for multi-family residential developments in Warsaw has reached around 18 months. "In 2016, the average time required to obtain a building permit for a multi-family residential project in Warsaw was around 82 days. By 2025, it had increased to 488 days — more than a fivefold rise. Excluding amended permits, the average processing time increased from 88 days in 2016 to 531 days in 2025," says Karkośiński. The pace has accelerated: processing times rose by around 30% in 2024 and a further 35% year on year in 2025.
"A building permit is increasingly becoming an asset in its own right, gaining tangible market value," says Katarzyna Tencza, Transaction Director at Walter Herz. In extreme cases, the administrative process from application to construction start now takes two to three years, driven by documentation requirements, environmental approvals, road and infrastructure issues, neighbouring-party involvement, and appeal procedures. This results in a longer investment preparation cycle, higher land financing costs, and fewer new projects entering the market, with completed homes delivered two to three years later than they otherwise would be.
Developers and private equity funds are redefining their land acquisition strategies, focusing on sites covered by a Local Spatial Development Plan (MPZP), with investor activity often serving one of two goals: increasing land value by obtaining a building permit and selling at a premium within a two-year horizon, or building a strategic land bank. The number of residential building permits issued in Warsaw has fallen from 281 in 2017 to just 143 in 2025, of which only 112 were newly issued. "Land valuation is now also influenced by the stability of the regulatory environment, the timeline of administrative procedures, the availability of technical infrastructure, transport accessibility, and environmental and social risks," says Tencza. "This means moving away from valuations based solely on planning parameters towards a comprehensive assessment of overall project feasibility."
Capital is concentrating in assets that offer greater certainty throughout the investment process. Sites with final and legally binding building permits have become the scarcest assets in the market. Properties whose future planning status remains uncertain are increasingly being discounted, particularly given the introduction of new general plans. In Warsaw's most prestigious locations, transaction prices have already exceeded several thousand PLN per sqm of gross residential floor area, with land acquisition costs accounting for as much as one quarter of the final apartment price.
