Luxury Appreciated

Wanted: Luxury

Wanted: Luxury

Developers argue that interest in luxury apartments is growing and there is no indication that this will change. After World War II, construction had to develop at an incredibly intense level in all of Poland’s cities, however no building before 1995 can be considered a luxury apartment, according to a KPMG and Reas report entitled: “The market for luxury real estate in Poland”. Now, however, such buildings are being constructed en masse. The development of exclusive apartments began in Warsaw in the second half of the 1990s triggered, among others, by a demand for such property by wealthy Poles returning from emigration and the new financial elite: bankers, businessmen, stars of stage and screen. The next period of the rapid development of the real estate market was a boom in the housing market in 2006-08. It was dominated by many foreign real estate companies moving into the Polish market and heralded a slew of luxury residential ‘towers’: Złota 44 and Cosmopolitan in Warsaw; Sea Towers in Gdynia and Sky Tower in Wrocław.
nieruchomosci.pb.pl

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Opportunities on Real Estate Market

Capital Boom

Capital Boom

According to a report prepared by real estate agents Szybko.pl, Metrohouse and Expander, prices on the secondary real estate market in June in the 15 largest Polish cities dropped by 1.6% YOY. Compared to May, they grew by 0.1%. It is predicated that Poles can expect a boom on this market in the coming months. Marta Kosińska, a Szybko.pl real estate market expert, believes that it will be caused the typical increased activity of realty buyers and renters during the autumn, as well as changes in regulations and more MdMs (Apartments for Young Adults). In almost all cities in which markets have been analysed (except Wrocław), average transaction prices dropped slightly when compared to the previous month’s prices. The most significant fall in prices has been observed in Gdynia and Gdańsk. The most noticeable difference between offered prices and transaction prices was observed in Krakow (a difference of 8%), whereas in Warsaw, offered prices are 2% higher than the prices at which the properties are eventually bought.
finanse.wp.pl

Polish Apartments Too Expensive

Luxury Apartments

Luxury Apartments

Owners of expensive apartments are attempting to sell them for much more than their actual market value and having problems finding buyers and are thus having to lower their expectations. City districts with the most expensive apartments on offer are not always the districts where the most expensive transactions are undertaken because the most expensive and luxurious apartments are not always displayed on regular property portals. “According to our data, this indicates that the locations with the most expensive flats and the most expensive transactions do not coincide. In fact, they only coincide 50% of the time,” says Mariusz Kurzac, CEO of Cenatorium. According to Morizon.pl and Cenatorium, the most reasonable prices of real estate are in Wrocław. The huge differences in most Polish towns and cities indicate a lack of professionalism in most real estate agencies which do not provide advice but blindly fulfil the orders of vendors. As a result, overly-priced apartments are left unsold for a long time. “The exception is Wrocław which in this respect is closer to Western European standards than other Polish cities,” claims Mariusz Kurzac.
nieruchomosci.pb.pl

Hard Times Ahead for Developers

Housing Future

Housing Future

According to the Central Statistical Office of Poland (GUS), by 2050 every other person living in Poland will be over 50 years old and the population will decrease by 4.5 million. Polish society is aging rapidy, which, in turn, affects the fixed property market. The primary market, currently booming, is expected to be hit particularly hard by these demographic changes. The Rynek Pierwotny website estimates that the demand for home loans will fall by 25-30% within the next 25 years, while the number of transactions on the fixed property market will fall by at least 15%. Andrzej Prajsnar, market analyst for Rynek Pierwotny says: “Demographic changes will certainly be the acid test for developers, as the sector, after experiencing significant growth in the last decade, will feel the drop in demand as soon as in five or six years from now. After 2020, it is to be expected that even more companies will focus their business activity on metropolises, which will make the market even more competitive and will bring about a decrease in profit margins. In such conditions only the most dynamic investors will be able to make a profit.”
nieruchomosci.pb.pl

Warsaw Office Complexes

Bright Future

Bright Future

The Warsaw office market, boasting nearly 4.4 million square metres, is currently the largest in Central and Eastern Europe. Modern, futuristic office buildings keep attracting increasingly more people thanks to numerous innovative facilities offered to tenants. As reported by Jacek Ochnik, head of Ochnik Development, such buildings include facilities such as car parks, gardens, restaurants as well as showers and changing rooms for those who come to work by bicycle. In Adgar Park West on Aleje Jerozolimskie, tenants can spend time actively in Gravitian Health and Sports Club, using modern sporting equipment, for example an AlterG anti-gravity treadmill. Those who want to rest and relax after work, can do so in saunas, a Turkish bath or a salt cave available in the office complex. Also to be found in AdgarFit are stores with sportswear and sports equipment as well as restaurants serving healthy food, a store with diet supplements, and PortaMedica, a sports clinic.
nieruchomosci.pb.pl

Loss of Polish Land

Historical Partitions

Historical Partitions

In 2014, foreigners acquired over 1000 ha land in Poland and nearly 50% fell into the hands of Dutch buyers. Over recent years, the number of land acquisition permits has not changed significantly. Last year, foreigners obtained 271 land property permits of a total area of over 1000 ha (in the previous year it was 252 permits for 697 ha). Two of those permits related to properties of a total area of 0.14 ha for Syrian and Turkish diplomatic institutions. Permits were granted mostly to Ukrainians (59 permits, 20 ha), Germans (36 permits, 78 ha), Dutch citizens (15 permits, 484 ha), French citizens (13 permits, 138 ha), and Belarusian citizens (13 permits, 1 ha). Over the period 1990-2014, foreigners obtained over 24,000 land acquisition permits for a total area of 52,000 ha. The largest number of permits was granted at the end of the 1990s. In 1999 alone, over 2,000 permits were granted for over 5,000 ha.
nieruchomosci.pb.pl

Vietnamese Entrepreneurs in Poland

More Than Just 'Sajgonki'

More Than Just ‘Sajgonki’

Is Poland a promised land for Vietnamese immigrants? Years ago many were holed up in small huts selling spring rolls, but now they are buying exclusive Warsaw apartments, limos and are more likely than ever to visit expensive shopping malls. Karol Hoang, owner of Asean, an Asian real estate agency, claims that Warsaw is a perfect place to get rich in. You can complain about the Social Insurance Institution (ZUS) or the Tax Office but what for? After all, red tape can be found all over Europe. Karol Hoang has been working with Chinese and Vietnamese people for over 8 years. He sells land and warehouses on the southern-eastern borders of Warsaw where they are purchased mostly by businessmen working in Asian shopping centres in Wólka Kosowska near Warsaw. The agency offers residences for sale worth PLN 1 to 3 million as well as rented establishments from PLN 3,500 to 4,500 a month. Hoang now wants to attract more Polish customers. “When I started my business, there was little room on the market. Competition was fierce on the restaurant market so I decided to sell real estate,” says Hoang. He managed to set up a rather large business, at least by the standards of Wólka Kosowska. He employs two office workers, four real estate agents, has opened a DHL courier point and an InPost agency. What is more, he owns an Asian models and actors agency.
natemat.pl