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21 October 2025

International Insights - Navigating Global Planning And Land Use Systems

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Herbert Smith Freehills Kramer LLP

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For developers and investors operating across multiple jurisdictions, the complexity of knowing what can be built, where, and under what conditions is compounded by the diverse frameworks of laws...
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For developers and investors operating across multiple jurisdictions, the complexity of knowing what can be built, where, and under what conditions is compounded by the diverse frameworks of laws, policies, and procedures governing land use. These differences can significantly impact timelines, costs, and feasibility. This is particularly true when developing innovative products, where success in one jurisdiction may not be easily replicated in another.

Having an advanced understanding of land use rights, the transparency of decision-making processes, and the potential impact of community objections is invaluable. It helps in estimating the time and cost of securing approvals, considering potential delays from appeals and legal challenges, and assessing the risk of regulatory changes, all of which vary widely between jurisdictions.

Each country—and often each city, state or region within a country—brings its own traditions, bureaucratic structures, and socio-political priorities to land use decisions. Most jurisdictions employ a "regulatory" or rules-based system, such as "zoning", where decision-makers have limited discretion to approve projects. However, this may be combined with an element of flexibility, as seen in "hybrid" or "flexible" zoning systems. The notable exception is the UK, which operates a highly discretionary planning system, where decision-makers exercise professional planning judgement on a case-by-case basis, informed by legislation, policy, and guidance. Interestingly, in England, this may be changing. To stimulate economic growth and address the housing crisis, the UK government is reforming the English planning system, potentially moving towards a more rules-based approach.

For globally-minded developers and investors, there is no substitute for local expertise. In this latest instalment of our International Insights series, our teams from the UK, US, France, Germany, Spain and Australia provide a general overview of the land use and planning systems in their respective jurisdictions, and discuss current issues that developers and investors in the global real estate market should be aware of.

Click on the headings below to read more. Please contact our team members for more information - all contact details are at the bottom of this post.

AUSTRALIA

An introduction to the Australian planning system

State and territory frameworks

In Australia, the planning system is regulated by the state and territory governments, with each of the eight jurisdictions having its own distinct framework. However, these frameworks are generally founded on similar principles, are established under legislation, and apply planning controls to land through subordinate legislation, policies, and other instruments. The planning system is supplemented at both the state and territory level and the national level by regulation of related subjects including building, environment, heritage including Aboriginal cultural heritage.

Zoning and planning controls

Land is "zoned", with the applicable planning controls on that land designed to encourage development and use consistent with the objectives of the zone. For example, land within residential zoning might prohibit intensive industry uses that would be inconsistent with residential amenity, and land proximate to public transport and social amenities may be zoned for commercial and higher density residential uses. Planning controls may also apply design requirements if there are particular characteristics of the land to which developments and uses must respond, for example to address bushfire or flooding risk. A key potential difference from other jurisdictions is that Australian planning controls either include, or are linked to, requirements relating to impact on native vegetation or native habitat, typically including offset obligations for unavoidable impacts.

Application requirements and decision-making

Application requirements and decision-making guidelines for planning approvals are generally tailored to the controls, though there remains a degree of discretion exercisable by decision makers. Local governments are generally the key decision makers; however, more complex or state-significant development proposals may be determined by state governments or Ministers.

Checks and balances

Checks and balances are also a key part of the planning system. Most planning processes involve public notice and consultation, as well as rights to seek merits review, that is, an appeal against a decision based on the substance of the proposal or approval conditions, or judicial review, which involves challenge to a decision based on procedural error. Third party rights of merits review are often more limited in respect of state-significant proposals for which the state government or Minister is the decision maker.

Key challenges and reforms

Complexity and timeframes

As in many other jurisdictions, the at-times onerous complexity associated with planning processes and lengthy timeframes to approval are key difficulties experienced across Australia.

For any large-scale project, a suite of approvals tends to be required, ranging across planning, environmental, heritage, building, and other matters, often involving local, state and national legislation, and requiring assessment by and approval from multiple regulators who do not necessarily have the resources or technical capabilities to promptly determine applications. This can result in slow and potentially inconsistent decision making.

State-facilitated pathways

In the context of growing populations, housing crises, and the energy transition, there has been a steady increase in recent years in the use of state-facilitated pathways to fast-track approvals for critical infrastructure projects, such as public infrastructure (transport, hospitals, utilities), housing, and renewable energy and transmission projects. In general, there is a shift away from considering intervention for an individual proposal, towards considering "classes" of proposals. Each jurisdiction takes a different approach to existence of, and the criteria for access to, "deemed" approvals or facilitation pathways. Proponents should seek expert advice relevant to the specific jurisdiction in which they are considering a development.

Balancing project facilitation and social considerations

A key challenge remains the balance between project facilitation and other social and environmental considerations relevant to the planning system, including liveability standards for design and community amenity. In efforts to ensure sufficient housing supply and affordability, most state governments have introduced reforms to streamline and accelerate rezoning of underutilised land and to facilitate subsequent development approvals. Last year, the New South Wales Government released its State Significant Rezoning Policy, intended to provide a faster state-led rezoning pathway for proposals that are of state or regional significance, or that have been unreasonably delayed by a local council. The Victorian Government has recently followed suit, announcing a new Unlocking Strategic Sites pathway seeking to fast-track the rezoning of underutilised land for housing and employment precincts, complementing its Development Facilitation Program, which offers a facilitated planning approvals pathway for significant residential development incorporating affordable housing. The Queensland Government has also brought in changes seeking to unlock land for community housing and deliver social and affordable housing faster by providing alternate assessment pathways.

Climate change resilience

A priority area for planning regulation is ensuring that development is resilient to climate change and its impacts, particularly in the face of more frequent and intense natural disasters in Australia. Australian local and state governments have already implemented a range of policy and legislative reforms relating to resilience and adaptation. With further policy support recently indicated at national level we anticipate in coming years there will be an increasing focus on ensuring development of infrastructure that supports community resilience, and that is designed for resilience in changing climactic conditions.

Foundational reforms

Foundational reforms to the planning systems are also proposed to address the above-mentioned challenges in various Australian jurisdictions. The New South Wales Government has recently proposed a suite of changes to its primary planning legislation to clarify planning objectives, streamline assessment processes and fast track approvals. The Victorian and Western Australian Governments are also preparing and consulting on amendments to their respective planning regimes to make them more contemporary and "fit-for-purpose", and the national Government will also be introducing reforms to its key environmental protection legislation, the Environment Protection and Biodiversity Conservation Act 1999 (Cth), to improve efficiency in its approval processes and how these interact with state planning processes. These reforms demonstrate a clear appreciation by Australian governments that improving the planning system and its integration with environmental regulation is critical to productivity growth and delivery of much-needed infrastructure.

Contacts: Heidi Asten, Peter Briggs, Melanie Debenham and Kathryn Pacey

ENGLAND

An introduction to the English planning system

The planning system in England has faced significant challenges for many years. The system is often blamed for the housing crisis, delays in essential infrastructure projects, and hindering economic growth in England. Other recent changes, like new building safety requirements, also contribute to these issues. "Growth" is one of the UK government's five missions, including an ambitious target to deliver 1.5 million homes in England by 2029. To have any chance of achieving this, the government recognises that the planning system in England must change radically and quickly.

Unlike many other jurisdictions, England's land use and planning system is highly discretionary. This means that decisions about what a landowner can do with their land are essentially made on a case-by-case basis. Decision-makers use their judgement within a loose framework of laws, policies, guidance and previous court decisions.

Obtaining planning permission

Any "development" of land requires planning permission. Permission is necessary for both operational development – building, mining and engineering operations – and a material change in use of the land.

There are three main ways by which planning permission can be obtained:

  1. following an express application to the local planning authority, planning permission can be granted by that authority or, in certain circumstances, by the Secretary of State for Housing, Communities and Local Government (the Secretary of State) or the Mayor of London;
  2. by a "deemed" grant of planning permission; or
  3. through a "development order", which may be made by the Secretary of State or by a local planning authority.

Problems with the current regime largely stem from the need for most developments to obtain planning permission through the application route.

Material considerations

When deciding whether to grant planning permission, decision-makers must consider the "development plan" and other important factors, including "material considerations".

The "development plan" is a group of documents setting out the local planning authority's policies for the area. All areas should have an up-to-date development plan, but many are out of date if they exist at all.

A wide range of factors can be "material considerations". Whether a decision-maker has, or should have, taken into account all relevant factors is frequently relied on as the ground for an appeal against refusal of permission or a challenge in court known as "judicial review" (which is the only way that third parties can challenge a planning decision).

Frequent changes in national and local government, combined with significant resource constraints, have made the express application route slow, complicated to navigate and difficult to predict. The result? A steady increase in the time and cost required to obtain planning permission, a corresponding decline in the number of applications being made and a significant reduction in developments being carried out.

Alternative routes to permission

Developers are exploiting alternative routes to planning permission where possible.

One alternative is a special development order, which is permission granted by the Secretary of State using secondary legislation. This route is seldom used. However, recently a developer asked the Secretary of State to use the procedure to grant planning permission for a new Universal Studios theme park near Bedford. Depending on the Secretary of State's decision, promoters of other major developments may try to follow suit.

More commonly, developers can use "permitted development" (PD) rights. Along with local development orders (which local planning authorities can use to consent specific types of development in all or part of their area), PD rights demonstrate how some elements of zoning already exist to a limited degree in the English planning system. Similar uses are grouped into Use Classes. Developers can change between uses within the same Use Class without having to get planning permission at all. PD rights grant a blanket planning permission for changes of use between Use Classes subject to certain conditions and limitations. An important example is the Class MA PD right, which allows developers to change from commercial to residential use. Recent reports indicate a significant increase in the use of the Class MA PD right, reflecting the recent growth of the living sector in the UK. The government is supporting this as a fast route to deliver housing, although PD rights are limited and are not available to authorise developments at scale.

Government reforms

Various governments have struggled to improve the planning system. In 2020, the government published a White Paper called "Planning for the Future", which suggested major reforms, including a simple zoning system. These proposals turned out to be too radical to secure Parliamentary support. They were heavily watered down and much of what was proposed is not yet in force.

The current government is now bringing forward its own planning reforms, making wide-ranging changes to planning legislation, policy and guidance. As part of this, the government is implementing several of the previous government's proposals. However, it would be a mistake to underestimate the extent of the current reforms, which aim not only to improve the planning system itself, but also to introduce new strategic planning and governance structures. In a recent report, the think tank Centre for Cities stated that "the Government's planning reform programme is more ambitious than is widely understood."

Learning from other jurisdictions

Some planning professionals suggest that the English system needs to learn from regulatory planning regimes in other jurisdictions. Over the past year, Centre for Cities have published a series of papers proposing how the current reforms could be implemented to move the English system towards a more regulatory regime. The current reforms don't yet go as far as the Centre for Cities suggest is necessary for the English planning system to move towards zoning. However, with forthcoming changes to planning laws, national planning policy and other structural changes, the system could well be heading in this direction, whether now or incrementally.

Contacts: Matthew White, Fiona Sawyer

FRANCE

An introduction to the French planning system

French planning law is a complex system, built from a plurality of rules developed at both national and local levels. It aims to organize land use and regulate spatial planning, balancing private and public interests.

National level

At the national level, the primary source of planning law is the Code de l'urbanisme (Planning Code). This code includes the national rules applicable throughout France. It sets out the fundamental principles of territorial planning, regulates the process for drafting planning documents, and specifies the conditions for issuing planning permissions. At other levels, planning involves producing documents that reflect a territory's development choices. These documents are hierarchical and drafted at regional, local, and municipal levels. Each document must conform to the higher-level guidelines, ensuring coherence in territorial development.

Local level

The Local Urban Plan (PLU), or its intercommunal counterpart (PLUi), is the most essential part of this structure. Every PLU includes a zoning plan for each part of the relevant municipality and sets out precise rules for granting planning permission (eg maximum building heights, land coverage, placement, parking, architectural aspects, etc). The PLU is the reference document for any planning application, expressing the municipality's choices for urban development and serving as the main guide for developers seeking the rules applicable to their projects. Today, all French PLUs are available on a single website (here), allowing quick access to the rules applicable to any project.

Need for planning permission

From a developer's perspective, the main issue in planning law is obtaining planning permissions. Anyone wishing to carry out construction work or alter the appearance or use of a building or plot must first obtain authorization from the relevant authorities. The authority responsible for issuing planning permissions is usually the mayor. The opinion of other services (such as the architects of France's historic buildings for projects affecting heritage sites or the fire safety services) might also be required depending on the project. The mayor makes the final decision, which may be approval, refusal, or a request for further documents. Planning permission can only be granted if the project follows the rules of the PLU. If an applicant feels a refusal is unjustified, they can challenge the decision to demonstrate that their project complies with planning rules.

The challenges of French planning law

Net zero land take

One of the major challenges for planning in France in 2025 is combatting the artificialization of land, embodied by the goal of "Zero Net Land Take" (ZAN). This principle requires a drastic reduction in the consumption of natural, agricultural, and forest land to achieve zero net land take by 2050. For the real estate market, this means an increasing scarcity of buildable land, higher prices in high-demand areas, and growing pressure for urban density.

Strict environmental standards

France's commitment to ecological transition is also reflected in the integration of stricter environmental standards into planning documents. PLUs now contain articles demanding the greening of spaces, preservation of biodiversity and sustainable water management. These requirements, while beneficial for quality of life and climate change mitigation, lead to increased construction and renovation costs, affecting the profitability of real estate operations.

Complexity and legal uncertainty

French planning law also faces prolonged development processes, primarily due to the complexity of its system. The involvement of multiple authorities in the permitting process, each with their own requirements, significantly slows progress, especially when additional consultations are necessary.

This administrative burden is compounded by a form of legal uncertainty. The rules applicable to a project are numerous, technical, and stem from various sources. Analysing feasibility requires not only mastery of different planning documents but also consideration of supplementary regulations that may demand further studies or authorisations, making project security particularly challenging.

Thus, a project may become unfeasible for many reasons – environmental or heritage protection, safety or public health constraints, or even economic imbalance in the territory. This uncertainty increases both the cost and complexity of developing many projects, forcing project leaders to maintain constant legal vigilance at every stage.

Legal challenges

Alongside these issues, the growing number of legal challenges against planning permissions is a crucial difficulty. The rise in abusive or dilatory proceedings significantly slows the completion of real estate projects. To address this issue and secure investments, the government has strengthened procedures (eg faster judgment times, filtering of clearly unfounded appeals, and financial penalties for bad-faith claimants).

Frequent reforms

The French government regularly drafts laws aimed at simplifying the planning system. However, these initiatives have rarely achieved their goals, and most of these reforms have proven unsatisfactory or have remained incomplete. Moreover, the overlapping of numerous planning documents also slows down the implementation of reforms, as each major change requires adjustments across all levels of planning. As a result, significant reforms often take several years before they are effectively applied in practice.

In summary, French planning law is evolving toward a more ecological, technical, and secure model, but also a more complex one. These changes, while promoting ecological transition and urban quality, pose new challenges for the real estate market: scarcity of land, rising costs, lengthening project timelines, yet also opportunities for those able to innovate and adapt to this new framework.

Contact: Anne Petitjean

GERMANY

An introduction to German planning law

German planning law is a multifaceted system consisting of numerous legal norms established at both federal and federal state levels. It is designed to structure land use and guide spatial development, balancing the private interests of developers or investors against the public good.

National level

At the federal level, the primary source of planning law is the Federal Building Code (Baugesetzbuch, BauGB). This statute lays down the fundamental principles of urban and spatial planning throughout Germany, regulating the preparation of planning instruments, public participation, and the conditions for development approval. A central complement to the BauGB is the Land Use Ordinance (Baunutzungsverordnung, BauNVO). While the BauGB defines the procedural and substantive framework for planning, the BauNVO specifies the types of permissible land use and building intensity within development plans. Together, they form the core legal foundation of German planning law.

Local level

Planning at lower levels – primarily by municipalities – takes the form of planning documents reflecting local development strategies. These documents are structured hierarchically: the preparatory land-use plan (Flächennutzungsplan) sets out the intended long-term land use for the entire municipal area, while the binding development plan (Bebauungsplan) translates those intentions into legally binding rules for individual plots. Here, the BauNVO plays a crucial role. It provides standardised categories of land use, such as residential zones, mixed-use zones, commercial or industrial zones, and special use areas. It also prescribes building density measures such as the floor-area ratio (GFZ), building coverage ratio (GRZ), and the maximum permissible building heights. By incorporating these parameters into the Bebauungsplan, municipalities ensure that development rights are clear, comparable, and consistent with national standards.

Every Bebauungsplan therefore includes a zoning map for the relevant municipal area and sets out detailed provisions for development, derived directly from the BauNVO's typology. It determines, for example, whether a site may be used exclusively for housing or for a mix of housing and commerce, the maximum building height, the extent of green space to be maintained, or parking requirements. This plan, rooted in the BauNVO's system of categories and parameters, is the key reference point for any application for planning permission. It expresses the municipality's choices for urban development within the federally defined framework and serves as the principal guide for developers seeking to understand the rules applicable to their projects.

Need for building permit

From a developer's perspective, the main challenge under German planning law is obtaining a building permit (Baugenehmigung). Anyone wishing to carry out construction work, change a building's use, or alter its appearance must obtain authorisation from the competent building authority. This authority usually is the municipal or district building control office, but depending on the nature of the project, other agencies may be involved as well – for instance, the heritage protection authority or environmental regulators. A building permit may only be granted if the proposed project complies both with the planning law (ie the BauGB, the BauNVO, and the relevant development plans) and with the applicable building regulations of the federal state (Landesbauordnung). Where an application is refused, the applicant may challenge the decision before the administrative courts to demonstrate compliance with the applicable planning and building rules.

Key challenges in German planning law

Net zero land take

One of the most pressing challenges for German planning law in 2025 is the tension between the need for new housing and infrastructure and the country's commitment to environmental and climate goals. Germany, like France, has adopted policies aimed at reducing land consumption, moving toward the objective of "net zero land take" by 2050. This policy significantly restricts the expansion of settlements into greenfield areas, leading to increasing scarcity of buildable land, rising land prices in high-demand regions, and increasing the pressure to densify existing urban areas.

Environmental and climate protection

In addition, environmental and climate protection objectives are reflected in the substantive requirements embedded in planning documents and state building regulations. Development plans now increasingly include provisions on sustainable water management, energy efficiency, biodiversity conservation, and the integration of green spaces. The BauNVO's typologies are evolving to incorporate mixed uses and more flexible forms of development to accommodate climate-friendly urban growth. While these measures improve quality of life and contribute to climate change mitigation, they also increase construction and renovation costs, affecting the profitability of development projects.

Administrative and legal complexities

German planning law further faces prolonged permitting processes, largely attributable to the complexity of the system. The involvement of multiple authorities, each with distinct competences and procedural requirements, can substantially slow down project timelines – especially where additional consultations or assessments are necessary, such as environmental impact studies or heritage evaluations.

Legal uncertainty and litigation risks

This administrative burden is compounded by legal uncertainty. The applicable rules for any given project are numerous, technical, and derived from multiple sources: federal law (including the BauGB and the BauNVO); state building regulations; municipal plans;, and sector-specific statutes (such as environmental, water, or monument protection law). Assessing project feasibility therefore does not only require expertise in these various layers of regulation, but also careful consideration of supplementary approvals that may be needed, making legal risk management an essential part of project development.

As in France, this legal complexity entails significant litigation risks. Building permits and development plans are frequently challenged before administrative courts. While Germany has introduced procedural reforms to accelerate litigation and filter manifestly unfounded claims, judicial proceedings can still delay or even derail major projects.

Reforms and digitalization

Finally, efforts to simplify and digitalise the planning system – including the BauNVO's integration with digital platforms for land-use data – have been ongoing for years, but have achieved mixed results so far. Legislative initiatives to streamline planning procedures, reduce bureaucracy, and integrate digital platforms for applications and public participation are progressing unevenly across the different federal states. Because German planning law rests on multiple interconnected instruments at different levels, reforms often require coordinated adjustments across all tiers of government – a process that can take years to implement in practice.

In summary, German planning law – anchored in the twin pillars of the BauGB and the BauNVO – is evolving toward a more environmentally conscious, technically detailed, and procedurally secure model, but also an increasingly complex one. These developments, while promoting sustainability and urban quality, pose challenges for the real estate and construction sectors: shrinking land availability, higher costs, longer timelines, and a need for greater legal vigilance.

Contact: Marius Boewe

NEW YORK

An overview of zoning administration in New York City

Zoning in the United States has had a relatively short history, yet it plays a prominent role in shaping the built environment. The United States and State Constitutions and applicable case law empowered State governments to enable local municipalities to establish zoning ordinances. New York State authorized its municipalities to adopt zoning legislation in 1913, and New York City has been a pioneer in the field of zoning since it enacted the United States' first comprehensive zoning ordinance in 1916 (the 1916 Resolution).

In New York City, land may be used or developed either on as "as-of-right" basis or pursuant to a discretionary permitting process. "As-of-right" refers to use or development that complies with the applicable provisions of the Zoning Resolution of the City of New York (as amended, the Zoning Resolution), the New York City Building Code (Building Code) and other laws, rules and regulations. The Department of Buildings, the agency responsible for administering the Zoning Resolution and the Building Code, has jurisdiction over permitting of "as-of-right" development. It is required to grant such a permit where the applicant establishes that it has site control and that its plans comply with applicable law.

An as-of-right framework

The 1916 Resolution consisted of 14 pages of text and three sets of maps designating use, height and area for all portions of New York City. It sought to achieve its goals with simply stated controls – what you could do by way of use, what you could not do by way of bulk, and what you had to do by way of parking and loading. The process of administering the rules was also simple. For the most part, construction required only ministerial reviews because New York City's zoning laws from the start were designed to ensure that land could be used or developed as a matter of right.

By the 1950s, it was evident that the original 1916 framework needed to be reconsidered. A new and more detailed zoning resolution was adopted on 15 December 1961. The 1961 Zoning Resolution introduced a number of zoning concepts, many of which are still with us today. It created three types of zoning districts – Residence, Commercial and Manufacturing Districts – and split them further into individual types that each had different combinations of use, bulk and parking regulations. The 1961 Zoning Resolution also introduced the concepts of "floor area ratio" (FAR) and "zoning lot" and included "incentive zoning" tools that allowed extra floor area for development that provided public open spaces.

Floor Area Ratio

FAR is one of the principal bulk regulations controlling the size of buildings, determining how much floor area can be located on a zoning lot. This change established an objective and easily comprehensible standard for determining both the development capacity of a lot and whether that capacity had been fully utilized. Each use within a zoning district has a maximum FAR which, when multiplied by the area of the zoning lot, produces the maximum amount of floor area allowed. On a 10,000 square foot zoning lot, for example, if the permitted uses had a maximum FAR of 10, the floor total floor area on the zoning lot could not exceed 100,000 square feet (10 FAR x 10,000).

Zoning Lot

The 1961 Zoning Resolution also created a structure – the zoning lot – for transferring floor area and other development rights between different properties on an as-of-right basis. Significantly, transfers of development rights through zoning lot mergers can be done without any governmental involvement. The benefits of transferrable development rights to the public include the maintenance of buildings with rent regulated tenants, the preservation of designated New York City landmarks, and the continuing maintenance and use of Broadway theatres, and additional opportunities for creativity in design. Their benefits to the development community include facilitating assemblages, enhancing the feasibility of maintaining existing buildings, and providing a vehicle for "averaging down" a project's land cost. In addition, transferrable development rights, when combined with the as-of-right character of most development, have made New York City's real estate market more nimble, flexible, and predictable for its participants.

Incentive Zoning

Incentive zoning can generally be described as the use of floor area bonuses and other financially valuable concessions to obtain a public goal. It was first used to encourage at-grade plazas in the belief that setting a building back from the street would both increase light and air and provide public open space. The types and character of incentives have changed considerably since 1961. Both the development community and the city have realized that zoning could induce development to include a range of public goods or address important public needs at no out-of-pocket cost to the city. Today's incentives encompass public open space, landmark preservation, arts uses, theatre rehabilitation, transportation improvements and affordable housing. Most of these amenities came from proposals made by the New York City Department of City Planning (City Planning). But, because they also make sense to the development community, others were either initially suggested, or were refined or elaborated, by private applicants.

Zoning today

The Zoning Resolution is designed to be flexible, allowing for necessary updates to guide development in a rapidly changing city. Zoning amendments, whether citywide or area-specific, adjust the Zoning Resolution or map to accommodate developments that align with city planning goals. Over the past century, the Zoning Resolution has grown from 14 pages of text and three sets of maps to over 3,000 pages of text and 126 zoning maps.

City Planning recently completed a sweeping overhaul of the Zoning Resolution through its "City of Yes" initiative. City of Yes includes three components:

  1. Carbon Neutrality, adopted in December 2023, to help make it easier to generate renewable energy, make buildings greener and more efficient, support the growth of electric vehicles and e-micromobility, and reduce waste and stormwater run-off;
  2. Economic Opportunity, adopted in June 2024, to support small business and entrepreneurs, foster vibrant streetscapes and commercial corridors, and boost the city's continued economic recovery; and
  3. Housing Opportunity, adopted in December 2024, to address the city's severe housing shortage by making it possible to build a little more housing in every neighbourhood.

The final version of Housing Opportunity includes a mix of zoning incentives and mandates that are projected to enable the creation of 82,000 homes over the next 15 years. They include:

  1. in certain zoning districts, a 20% increase in the basic maximum FAR and a commensurate increase in building height for projects that provide permanently affordable housing (at deeper affordability levels than the inclusionary housing program which it replaced);
  2. expanding the universe of buildings eligible for residential conversion under certain more relaxed light and air standards of the New York State Multiple Dwelling Law to include non-residential buildings (other than hotels) located anywhere in the city that were constructed prior to 1991, allowing underused, non-residential space to turn into homes;
  3. eliminating or reducing residential parking mandates in much of the city;
  4. establishing new higher-density residential districts that, for the first time, allow more than 12 FAR of residential use on an as-of-right basis (at 15 FAR and 18 FAR); and
  5. making it easier for individually landmarked buildings to sell their unused development rights, while keeping all historic preservation rules in place.

In a city that is as complex and that moves as fast as New York City, as-of-right zoning is a key piece in an efficient development process. It means that development can move more quickly, with greater certainty, and at a lower cost. Our goal at HSF Kramer is to help clients add value to their property and developments while minimizing regulatory risks and processes. To do this, we work on all the land use aspects of site development in New York City, including helping clients navigate the ever-evolving complexities of the Zoning Resolution.

Contact: Sheila Pozon

SPAIN

A brief introduction to the Spanish planning system

National and regional planning framework

Spain's land use and zoning framework operates through a multi-tiered system shaped by national, regional and municipal legislation. While the national Land Law sets out overarching principles, each of Spain's 17 regions has the authority to enact its own planning laws. This decentralised approach results in a fragmented regulatory landscape, with zoning rules varying significantly across jurisdictions to reflect local priorities.

Urban planning is usually structured around municipal plans, which set out long-term development strategies, zoning maps, and land use parameters. These plans are binding and must be adhered to in any construction or redevelopment project. Developers must also navigate licensing procedures and compliance with environmental and heritage regulations.

Challenges in the Spanish planning system

Housing shortage and affordability

Spain's planning system is often seen as a barrier to agile development due to the interplay between regional and local regulations, which, combined with bureaucratic delays, can deter investment and slow housing delivery. The country faces a pronounced shortage of affordable housing.

In this context, developers and investors are increasingly focused on expanding the housing stock through both new construction and the conversion of industrial or commercial properties into residential units. However, change of use in Spain is more restrictive than in other jurisdictions. Success depends not only on whether municipal planning instruments explicitly permit such transitions, but also on constraints imposed by local by-laws and horizontal property regimes. This creates considerable uncertainty when repurposing existing assets. The imbalance between limited supply and rising demand has led to sharp increases in residential property and rental prices. In response, the Spanish government enacted a Housing Law in 2023 aimed at addressing these structural issues. However, the anticipated impact of the legislation has yet to materialise.

Commercial and logistics

Beyond residential development, Spain's planning system plays a pivotal role in shaping the logistics and commercial sectors. Logistics hubs, such as those in Madrid and Catalonia, are expanding rapidly, yet remain subject to complex zoning and infrastructure constraints. Commercial redevelopments in urban cores must reconcile heritage protections with modern use cases. These dynamics underscore the need for early legal engagement.

System reforms

Reforming the Land Law has become a recurring theme in Spanish policy debates. Proposals from political and industry stakeholders aim to increase the availability of land, unblock stalled urban planning processes, and provide greater legal certainty to facilitate the development of housing and infrastructure. Nonetheless, ongoing political instability continues to pose challenges to the advancement and implementation of these reforms.

For investors, Spain offers diverse opportunities, but achieving positive outcomes depends on early legal review, local engagement and strategic management of its layered planning system.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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