Spatial planning as an efficacious and risky factor shaping the market attractiveness of properties

Abstract

A strong correlation occurs between spatial planning and the market attractiveness of properties. Since planning is a determinant of property value, the interests of participants of the property market have an impact on planning decisions. In consequence, local plans primarily specify the functions of areas according to the expectations of property owners so that it is possible to achieve a high land rent. This mechanism generates numerous positive effects for the entire local socio-economic space. Its beneficiaries include not only property owners but also local governments in districts and, to a certain extent, the entire environment. The adaptation of the provisions of local plans can be a trigger of lasting mechanisms ensuring local development. At the same time, however, it often leads to an excessive enlargement of residential areas in relation to the actual demand. This results in the increasingly scattered buildings. Besides the contamination of landscape, it also results in excessive costs of construction and maintenance of technical and road infrastructure. This can lead to a permanent limitation of the local government’s ability to finance indispensable development projects. The excessive area of land for construction also creates a risk of speculation bubbles. Taking further advantage of the positive effects of links between spatial planning and property management as well as eliminating the negative effects probably requires a change in the system of planning in Poland. However, even under the current system, it is possible to achieve positive effects with an adequate level of knowledge and effective actions of the local government.