In the next article in the series, "Tuesday Mornings for the Construction Industry," we continue to discuss issues related to local development plans (" MPZP "). Today, we address the topic of compensation for a decrease in property value resulting from the implementation of a new or amended MPZP, also known as planning compensation. This stems from the fact that the introduction or amendment of a MPZP can have negative consequences for owners or perpetual users of real estate – it can prevent or significantly restrict the current use of the property, or cause a decline in the property's value. Legislators have introduced mechanisms into the Spatial Planning and Development Act (" UPZP ") to compensate for property losses resulting from these circumstances.
Basic claims
Pursuant to Article 36, Section 1 of the Spatial Development Plan, if the adoption or amendment of the plan makes the use of the real estate in the previous manner impossible or significantly limited, the owner or perpetual user may demand from the municipality or the entity controlling the closed area, if the amendment or adoption of the local spatial development plan resulted from the needs of national defense or security:
- compensation for actual damage suffered or
- purchase of the property (in whole or in part).
This provision applies to situations in which, for example, the land was designated for development, and the plan prohibits development or significantly limits it by establishing green areas or protection zones. The provisions of the Spatial Development Plan allow the commune to propose an alternative property, and upon conclusion of the exchange agreement, the claims expire.
Additional circumstances have also been introduced by the new Article 37 (1) of the Spatial Development Plan. According to this provision, if a change or adoption of the Spatial Development Plan leads to restrictions on development and management resulting from the location of a ground-based aircraft facility and the areas limiting development, the owner may submit the aforementioned claims to the Polish Air Navigation Services Agency. The provisions relating to general claims under the Spatial Development Plan apply to these claims.
Circumstances excluding the filing of a claim
It's worth noting that compensation isn't available in every case. This right doesn't apply to amendments to or adoption of a local spatial development plan (MPZP) if its content isn't the result of the municipality's independent determination of the property's intended use and purpose , but rather arises from circumstances such as:
- environmental, natural or geomorphological conditions related to the occurrence of floods and the resulting restrictions provided for in separate regulations,
- decisions on the location or implementation of public purpose investments issued by bodies other than the municipality,
- prohibitions/restrictions on development and land development resulting from the provisions of laws and normative acts, including local law issued on their basis.
Claim after sale of real estate
If the adoption of a local spatial development plan (MPZP) results in a decrease in the value of real estate, the owner or perpetual user who disposed of the property and did not previously exercise the claims indicated above may claim compensation from the municipality equal to the decrease in the property's value. Such a claim (Article 36, paragraph 3) requires the cumulative fulfillment of the following conditions : adoption or amendment of the local spatial development plan, a decrease in the property's value, a causal link between the introduction of the MPZP and the decrease in value, the sale of the property, and the absence of prior claims for redemption or compensation for actual damage. In practice, disposal means a paid and equivalent legal act (usually a sale); donations or expropriations do not allow for the pursuit of such compensation.
Compensation calculation procedure – claim after sale of real estate
The principles for calculating compensation are regulated by Article 37 of the Public The amount of compensation for the reduction in the value of the property is determined on the day of its sale for consideration :
- in a situation where, as a result of the adoption of the MPZP for areas not yet covered by such a plan or not covered by the MPZP in force on the date of adoption of this MPZP, further actual use of the property in a manner consistent with the actual use of the property on the date of adoption of the MPZP has become impossible or significantly limited – only the actual use of the property and access to infrastructure facilities existing on the date of adoption of the MPZP, such as roads and utility networks;
- in a situation where, as a result of a change in the local spatial development plan or its adoption for the area covered by the plan in force on the date of adoption of this local spatial development plan, the use of the real estate or part thereof in a manner consistent with the previous intended use has become impossible or significantly limited - the previous intended use resulting from the changed/repealed local spatial development plan.
Therefore, it is necessary for the authority to commission a valuation report to be prepared by a property appraiser who will determine both values.
Pursuant to Article 37, Section 3 of the Land Use and Property Act, a claim for compensation may be filed within five years of the date on which the local zoning plan or its amendment became effective (i.e., from the date the plan entered into force as published in the provincial official journal). The obligation to pay compensation or buyout must be within six months of the date the application is filed ; in the event of delay, statutory interest is due.
Summary
The possibility of obtaining compensation for loss of property value due to the adoption or amendment of a local development plan is an important element in protecting the rights of property owners. The law provides for two compensation mechanisms: a claim for the purchase of the property or compensation for actual damage when the plan prevents its current use, and a claim for compensation for the loss of value when the owner/perpetual user decides to sell the property. If you are looking for an advisor to pursue your rights, please contact our law firm.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of August 25, 2025
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