After years of a boom on the housing market, profits are dwindling. Investments in apartments for rent are no longer as profitable as they were a year ago. In some regions of Poland, short-term rentals are making a loss, and long-term rental rates are going down due to over-supply. Property prices have gone up much faster than rental rates. If not a flat, then what? In new projects we can find an interesting offer of service and commercial units. A local shop can be a source of very good income
DEVELOPER’S LACK OF IMAGINATION
Will commercial units in most housing estates always ensure profits for investors and easy access to shops and services for residents? When buying a unit, professional commercialisation allowing to generate good profits from the property is a particularly important element. The best tenants are retail and service chains. The decisive criterion for our firm in an investment offer for a counterparty is the availability of retail and service outlets in the immediate vicinity. We carry out very precise market analyses in order to optimise the profits from the lease of commercial spaces. Most of our clients are both domestic and foreign investors. A large group includes large investment companies with a strong position in the market, investment funds and private investors. When deciding to buy commercial units, one should avoid as much as possible small-scale projects or developers without imagination, who build commercial units in locations with a large supply of commercial space or places with low pedestrian traffic. Usually, investors do not impose the function of the unit on their clients. The most popular are grocery shops, drugstores, or laundries. Sometimes investors adapt some of the units for catering purposes and the buyer does not have to worry about adapting the ventilation to legal requirements, etc.
