Lithuanian Investors Eye the Polish RE Market: Building Permits Can Be Obtained Within Two Months
Major Lithuanian real estate (RE) investors are increasingly venturing into the Polish market, despite its bureaucratic nuances. They are drawn by a robust economic environment and the possibility, in certain cases, of obtaining a building permit in just a few months. However, experts warn that some transactions may require patience, making proper preparation essential. These topics were discussed at the Klubas4 meeting organized by the Lithuanian Real Estate Development Association (LNTPA) and its member law firm TRINITI JUREX.
“Lithuanians are reducing investments in other Baltic states and seeking opportunities in larger Western and Central European economies. Poland is a natural direction because it is a close, understandable, competitive, and sufficiently liquid market that allows for the effective diversification of investment portfolios outside Lithuania,” said Mindaugas Statulevičius, President of LNTPA, during the event “Real Estate Investment in Poland: Business Environment and Opportunities.”
According to him, the largest players in the Lithuanian RE market have been actively analyzing opportunities in Poland for several years. Some have not only completed their first projects or transactions but already possess solid experience.
“There is a significant amount of accumulated capital and strong potential for raising more, which is why markets where money can be put to work effectively are being sought. While building permit processes in Lithuania are becoming longer, in Poland, permits can often be obtained within a few months. This is a vital argument for investors seeking faster returns,” the LNTPA President noted.
Maintaining Strong Results
According to data from the RE services firm Savills Poland, the Polish RE market attracted €4.3 billion in investment in 2025. Although this was 12.9% lower than in 2024, investments in the office segment grew by 7.4% to €1.8 billion, and the industrial RE segment saw an 11.8% increase to €1.5 billion.
The retail segment recorded weaker results, with investment dropping 47.7% to €861 million. According to Jacek Kałużny, Head of Capital Markets at Savills Poland, investors are favoring lower-priced retail parks. Currently, as much as 61% of ongoing construction is taking place in small towns with populations under 50,000.
Meanwhile, the Polish housing market experienced an exceptional period compared to the rest of Europe, noted Konrad Plochocki, a member of the Supervisory Board of the Polish Association of Developers (PZFD).
“In 2023, while most European housing markets were contracting, Poland recorded some of its best results in history. Even with high interest rates and inflation, government support for first-time homebuyers stimulated demand, and housing prices in major cities grew by up to 20% annually,” said Mr. Plochocki.
This was also influenced by the war in Ukraine, leading to a situation where supply could not keep up with demand, and land prices in major cities doubled in some areas over a short period. For this year, he predicts a stable year aligned with average growth.
“In Poland, residential land is almost always developed for sale rather than for rent. In fact, I don’t know of a single investment where a developer with a residential plot in a good location would plan to build for rent,” added the PZFD board member.
However, according to J. Kałużny, there is growing interest among investors in co-living projects for rent: “Student housing is very attractive to investors due to a lack of high-quality supply—currently, there are only enough rooms for 2.1% of all full-time students. Senior housing, including nursing homes and assisted living facilities, is also becoming increasingly attractive due to demographic shifts.”
Building Permits in 2 months—With Conditions
Olga Siomina, Associate Partner and Attorney at TRINITI JUREX, noted that the mechanism for closing investment deals in Lithuania and Poland shares many similarities. Due to certain tax nuances and risk management, investors still choose between “asset deal” and “share deal” models.
“Nevertheless, for the successful implementation of international investment transactions, it is crucial to employ advisors and consultants who understand the nuances of the local market and legal environment, and to ensure smooth cooperation between all consultants and the decision-makers based in Lithuania,” she stated.
Agata Demuth, Partner and Head of the Real Estate Group at Osborne Clarke, who analyzes the legal and procedural aspects of the Polish market, emphasized that despite significant bureaucracy, some processes move faster in Poland than in Lithuania. For instance, the process of obtaining a building permit usually takes just a few months.
“However, property transactions have their own peculiarities. They are conducted only in Polish; a notary must read the contract aloud—at least the main part—and if even one signing party does not speak Polish, an interpreter is mandatory. This makes the process take longer. The longest contract reading I have heard of lasted about ten hours. It requires patience and proper preparation,” she explained.
According to A. Demuth, an alternative path could be share deals, which allow for a reduction in formal procedures and speed up the signing process.
Mr. Plochocki added that investors must also account for the pre-construction phase. Even with a “clean” plot, it can take about two years from the land acquisition to the actual start of construction, and one must pay attention to the long list of mandatory documents and permits required.
Successful Entry by Lithuanians
The fund management company Eika Asset Management entered the Polish market in 2023, when its fund closed a deal for the acquisition of the 7,200 sq. m Celebro business center in Warsaw. Paulius Stulgaitis, the company’s Fund Manager, emphasized that the decision to invest in Poland was based on geographical proximity and the country’s strong economic indicators.
“We are interested in commercial asset classes: offices, logistics, and retail. Poland is currently one of the largest EU economies in the Central region, characterized by stable domestic demand, a strong industrial base, and consistent GDP growth. One of the most important factors is also good market liquidity,” Mr. Stulgaitis said at the event.
According to him, the ability to choose from a wide spectrum of deals—both development projects and operating assets—is vital for investors. Last year alone, Eika Asset Management evaluated about 350 potential deals, selecting a few that met the company’s strict return and risk criteria.
“We closed our first deal in Poland in three months, even during the Christmas holiday period. This showed us that the market operates efficiently, there are professional advisors, and a wide range of financing options,” said P. Stulgaitis.
The Lithuanian crowdfunding startup InRento also entered the Polish market in 2023, offering investments in a residential project in Nowy Sącz, Southern Poland. By 2025, Poland had become one of the company’s most active and strategically important markets.
Bernardas Preikšaitis, Executive Director of InRento, noted that while major investors usually do not face a lack of capital, the same cannot be said for small or medium-sized RE developers.
“Small developers in Poland find it difficult to obtain bank financing, and private borrowing is expensive. We offer an intermediate solution—competitive pricing and speed. This becomes a significant advantage in the market,” said B. Preikšaitis.
According to him, Polish investors have adapted to higher interest rates than those in Lithuania, so alternative financing instruments naturally find their place in the market.
Translated by AI and reviewed for accuracy
Moments from the event (Photographer: Vygintas Skaraitis)
