Krakow will not comply with new regulations, stalling construction
Kraków’s failure to adopt its general development plan by the statutory deadline could delay integrated investment plans and suspend some housing projects for 8–20 months. Although nearly 90% of the city is covered by local zoning plans, developers warn that the planning gap will restrict the conversion of commercial land to residential use. Imperial Capital is currently building about 1,000 units and holds land for roughly 3,000 more. The company plans three additional projects totaling about 500 apartments this year. High land prices — now representing 30–35% of apartment prices — and changing regulations are increasing costs and risks.
Despite stable supply and demand, developers do not expect housing prices to fall significantly.