Property due diligence – the key to a safe investment in Poland
Poland’s real estate market continues to attract foreign investors, especially from Western Europe. With its strategic location, growing consumer base, and competitive construction costs, Poland offers compelling opportunities. But, before any transaction is finalized, one step is absolutely essential: property due diligence.
At our firm, we’ve been conducting legal due diligence ever since our founding; any typical year sees us completing dozens of such analyses. We know from experience that neglecting this step is like buying a pig in a poke. A professional, multidisciplinary approach to due diligence is the key to managing risk and securing financing.
What, exactly, is property due diligence?
Due diligence is a structured investigation into the legal, technical, and financial aspects of a property. It helps investors understand what they’re buying, identify risks, and make informed decisions. In Poland, due diligence is especially important due to historical restitution claims, complex zoning laws, and evolving environmental regulations.
The process typically covers:
- Legal due diligence: Legal title verification, zoning compliance, lease agreements, environmental permits, and restitution risks.
- Technical due diligence: Structural integrity, infrastructure, and compliance with building codes.
- Financial due diligence: Operating costs, taxes, lease terms, and investment returns.
Mysłowice Retail Park – case study
One of our recent due diligence reports concerned a planned retail park in Mysłowice developed by KRAM Investment S.A. The property spans over 8.5 hectares and includes a former AUCHAN hypermarket. The site is being redeveloped into a modern retail and service centre.
Some key findings from the report:
- Part of the land is formally classed as riparian greenery (1ZE), which limits development to non-building infrastructure such as water management systems. This required careful planning and technical analysis (zoning restrictions).
- The property lies within a former coal mining area. Although mining operations ceased in 2016, geological assessments were necessary to evaluate risks of subsidence and similar geological issues (mining legacy).
- The site encompasses a wastewater treatment facility requiring water law permits for discharging treated sewage into the Bolina river. These permits must be transferred to the buyer (environmental permits).
- The property includes roads, parking lots, and utility connections. Some of these elements lacked formal documentation, requiring additional verification with local authorities (infrastructure verification).
- The land is held under perpetual usufruct until 2096. Historical ownership changes were traced and verified to ensure clean title (restitution and ownership).
- The architectural plans were prepared by BULAK sp. z o.o. and include rights to modify and exploit the designs. Transfer of intellectual property rights was a key part of the transaction structure (project documentation).
Why is due diligence so important?
Due diligence is not just a legal formality – it’s a strategic tool. A well-prepared report:
- Identifies and grades risks (our reports use a risk matrix to classify issues as high risk, medium risk, low risk, or information purposes only).
- Includes rectification suggestions (we provide actionable recommendations to mitigate or eliminate risks).
- Supports financing (banks and investment funds require objective, professional assessments before approving loans or equity participation).
- Facilitates negotiations (buyers can use the findings to renegotiate price, warranties, or contract terms).
We work with numerous banks and financial institutions which rely on our due diligence reports to assess collateral value and transaction viability. Our analyses are often a prerequisite for credit approval and are used in internal risk management procedures.
Beyond the legal lens – practical insights
Due diligence also includes non-legal elements that are crucial for investors:
Technical infrastructure
Drone surveys, geotechnical studies, and environmental assessments help verify the usability of existing infrastructure and identify hidden costs.
Community and regulatory sentiment
Monitoring local press and municipal planning agendas can reveal potential opposition or delays. In Mysłowice, for example, the city’s water management policies influenced the design of stormwater systems.
Intellectual property and design rights
In redevelopment projects, architectural documentation must be carefully reviewed to avoid copyright disputes. We ensure that clients receive full rights to modify and use project designs.
Our approach
Each due diligence report is tailored to the given transaction. We liaise with architects, engineers, environmental consultants, and financial advisors. Our legal team ensures that all findings are documented, actionable, and aligned with the investor’s goals.
We don’t just identify problems – we solve them. Whether it’s securing access to public roads, transferring permits, or negotiating with municipalities, we guide our clients through every step.
Conclusion
Property due diligence is the cornerstone of a safe and successful real estate investment in Poland. It protects buyers from legal surprises, supports financing, and ensures compliance with local regulations.
Our firm has been advising investors for over three decades. We know the market, we know the risks, and we know how to deliver results. Don’t fly blind – let us help you invest with confidence.
Next to come
In our next article, we’ll explore financing options for real estate investments in Poland, including mortgages, investment funds, and alternative structures.
About the authors
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Walentyna Okuń |
Maciej Boryczko |
About GESSEL
For over 30 years, GESSEL law firm has been a trusted partner for the business community both in Poland and internationally, offering a client-centric approach that adapts legal services to unique needs. By supporting clients at every stage of their company’s journey, from initial investments to long-term growth, GESSEL has earned a reputation as a comprehensive legal advisor committed to delivering efficiency and success.
Drawing on extensive experience across various sectors – including finance, construction, real estate, food and beverage, transportation, retail, pharmaceuticals, energy, and IT – the firm is well-equipped to address the most demanding business matters. This versatility is reflected in GESSEL’s consistent presence at the top of both national and international legal rankings, underscoring the enduring trust its clients place in its expertise.
A nearly 100-member team is renowned for delivering practical legal solutions that safeguard client interests, while also driving their projects forward with speed and precision. By combining multidisciplinary knowledge with a deep understanding of the business world, GESSEL ensures that every client benefits from comprehensive advice that supports their vision for success.
