Feb 11 • 09:45 UTC 🇵🇱 Poland Rzeczpospolita

Condo investments in question: Will new regulations hit the market?

A proposed law in Poland could significantly hinder new tourism investments, raising concerns over its impact on the real estate market and tourist attractiveness in resort areas.

In Poland, a proposed amendment to the law on property ownership is generating significant debate regarding its potential impact on the real estate market, especially in tourist towns. According to experts, if passed in its current form, the law could block the development of new condo investments, which are crucial for attracting tourists seeking modern accommodations. The legislation aims primarily to address the issue of so-called 'pathodeveloper' projects, particularly in large cities, where substandard small apartments have become increasingly common.

Industry professionals warn that the uncertainty surrounding municipal council approvals could deter investors from purchasing land for new constructions, as there are no guarantees that such developments would receive necessary permits. This situation could lead to stagnation in tourism infrastructure, as potential new projects might not materialize. As a result, the appeal of Polish resorts could diminish, as tourists often look for new offerings, and a halt in new developments may lead to higher prices for existing resort properties like aparthotels and condohotels.

Notably, industry leaders express alarm regarding the long-term consequences for the tourism sector, asserting that the law could inadvertently harm the very markets it aims to protect. The head of Sun&Snow has labeled the proposed amendments as a significant threat to the tourism industry, emphasizing the need for a more balanced approach that fosters sustainable development while addressing the concerns related to poor-quality housing in urban areas.

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