Analysis of adjacent areas – motion for the planning permit

offer for the real property owners

When taking a decision on the purchase of an investment real property, a potential investor never compares real properties taking the price of a square meter of the plot as the criterion. Such investor carries out a number of analyses to calculate the maximum PUM (PU), i.e. the maximum service and residential (service) area of the development that can be constructed on a given plot of land. Then, based on the business plan he evaluates what percentage of the total value of PUM is made up by the value of the land.

Legal changes within the scope of spatial development and regulations concerning the management of the real property often have significant and decisive influence on the real property value.

If the zoning plan has been enacted, the analysis of the fundamental investment parameters arising from the plan, like the minimum biologically active area, maximum height, maximum footprint, and other factors, is relatively simple. The owner may carry out the basic analysis by himself in the course of preparations for the sale of the property or the negotiations with the investor.

In consequence of the new legal regime introduced at the beginning of 2004, 85% of the area of Warsaw is not covered by any zoning plan (the similar problem is observed in other municipalities too). This requires taking a fresh look at the market and investment value of the real property.

At present, the prevailing rule (where there is no zoning plan) is the rule of adjacency, which, briefly speaking, means that, in general, structures and buildings to be erected on a plot must match the structures existing on the „adjacent plot” (analyzed area), accessible from the same public road, in terms of both the function of the building and its dimensions. This is a serious limitation of the development potential affecting the value of the real property. At the same time, it is extremely difficult to obtain the confirmation that the planned development is acceptable. It requires complicated technical and formal procedures, which the owner is often unable to carry out.

In the situation where there is no zoning plan, a measureable estimation of the value of a specific real property should be preceded at least by an analysis of the possibilities of obtaining the planning permit. The only legal confirmation of the possibility to develop the real property, and indirectly, the confirmation of its value, is the planning permit issued by the competent authority.

The planning permit referring to the development based on the neighborhood principle may be lawfully transferred from the applicant (e.g. owner) to the purchaser of the real property. The issuance of such permit is one of the key elements decisive in the process of determining the actual value of the real property, inevitable in the negotiations concerning the sale of the real property. The procedure of issuing the planning permit takes several months. The lack of such permit may discourage potential purchasers from getting involved in the negotiations, or taking into account the investment risk, the real property price may not achieve the level satisfying the its owner.

Our company carries out relevant audits and applies for required permits, decisions and opinions confirming the investment potential of the real property for every client concerned, including in particular owners.

We have gained extensive experience and relevant credentials you may familiarize yourself with by reading the presentation on our website. If you wish to learn more details related to one of the fields we deal with we will be happy to arrange a meeting at any time convenient to you and discuss all the issues face to face. We do hope that you will find the strategic issues interesting .