Poland reviving long-term land rights for housing

Background & Context

Poland’s Ministry of Finance and Economy announced draft assumptions for a new bill published in the Government’s Legislative and Programme Work Schedule. The proposed legislation aims to regulate rights to land developed by housing cooperatives, amend the Real Estate Management Act and several related laws. Crucially, it would partially restore the possibility of granting perpetual usufruct rights for residential purposes, a legal mechanism that virtually disappeared in 2019.

Perpetual usufruct right provides a legal title to use publicly owned land, similar to ownership (exclusive use, the right to build, transferability of the title) but only for a fixed term, typically 99 years. Conditions for use, including fees and purpose, are set out in an administrative decision or a contract between the landowner and the usufructuary. 

Why the Change?

On 01 January 2019, perpetual usufruct of land developed with residential buildings was converted into ownership by law. This reform effectively eliminated the option to establish such rights for residential purposes. According to the Ministry, the absence of alternative legal instruments has created a gap: public land cannot easily be made available for housing in a way that balances investor security with public oversight. 

The government argues that reinstating perpetual usufruct for residential developments would allow public landowners to maintain control over land use and ensure that development goals, such as addressing Poland’s affordable housing challenges, while leveraging public land resources and offering investors a stable legal title at significantly lower costs than purchasing land, are met.

Key Elements of the Proposal

The draft bill proposes to reintroduce perpetual usufruct for residential purposes for private and institutional investors, and is designed principally to support social and municipal housing, and student accommodation. The legislation, however, would impose limitations: it would prohibit the creation of separate ownership of individual units on such land, and ban the sale of partial shares in the right.

Next Steps

To make the scheme attractive, the bill will propose preferential fees. The initial payment would not exceed 10% of the land’s market value, while annual fees would be capped at 0.3% of the land’s price, representing a substantially lower entry threshold compared to acquiring full ownership, which could stimulate investment in affordable housing projects.

The Ministry plans to submit the bill for adoption by the Council of Ministers in the first quarter of 2026. Detailed provisions of the bill have not yet been disclosed. 

If implemented, this reform could open a new, affordable pathway for international investors seeking long-term, secure involvement in Poland’s fast-developing residential market.

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Ewa Olszewska specialises in real estate law. She advises foreign commercial property investors on real property transactions (asset and share deals), as well as asset management.