Price list for developers. They will contribute to the construction of roads under new rules
Krakow developers will contribute to the construction of city roads. Today they also have such an obligation, but they do not share equally (and fairly) in the costs. This will change because the city has proposed an official price list. The amount of the fee depends on the area of the apartments built in a given investment. This system works well in Warsaw.
Developers are obliged to co-finance the infrastructure serving the residents of the estates they build: if the estate is not connected to a main road, such a connection should be built. If necessary, developers must spend money on rebuilding the road system around their investment.
Krakow developers will contribute to the construction of roads
The performance of this duty varies. Often, the greatest burden falls on the company that is the first to start construction in a given area, and subsequent developers use the existing (rebuilt) infrastructure and do not contribute much. This results from the desire to save money, but also from not always clear rules for financing neighborhood investments.
To avoid unnecessary disputes and ambiguities, Kraków has developed a price list for developers: the fee will depend on the number of apartments in each investment. Krakow’s “Gazeta Wyborcza” informs that for the purposes of the regulation, the city has been divided into two zones. In the one closer to the center (also includes the old part of Nowa Huta), developers will pay PLN 290 net “road fee” for each square meter of the planned apartment. In the second, much larger zone, the rate will be PLN 250 per square meter of apartment.
How will this translate into specific fees? “GW” calculates that if someone builds an apartment building in the city center with 12 apartments – each of 100 meters, then they will pay an additional PLN 350,000 for this investment. zloty. If the developer plans to build a housing estate on the outskirts, consisting of e.g. 5 buildings (each with 60 apartments with an average area of 50 m2), the additional payment will amount to PLN 3.75 million. But if the investor is planning to build a large building, e.g. 9 blocks of flats (each with eight floors), which will contain a total of 1,600 apartments, then the subsidy will reach up to PLN 20 million.
It is worth adding that Krakow does not keep open doors: in Warsaw such a price list has been in force since 2021 and officials from the former capital contacted the Warsaw City Hall to take advantage of the capital’s experience.
Will the prices of apartments in Krakow increase?
Now the most important question from the buyers’ point of view: will this increase the price of apartments, which in Krakow are already among the highest in Poland? The website asked Julia Bogdanowicz, vice president of the Krakow branch of the Polish Association of Developer Companies, about this. In her opinion, there is no such risk because, firstly, the obligation for developers to participate in the costs of infrastructure construction already existed, it was simply not always properly enforced. Secondly: the rates proposed by Kraków are realistic. – When we analyzed the contracts concluded so far between the city and developers, these were the rates paid by those who participated in the construction of roads – she explained.
Each developer will be able to choose whether they prefer to pay according to the official price list or implement the route indicated by the officials themselves.
