We are currently observing a dynamic growth in the real estate market. The same is true for its Premium sector. Today, one can find premium real estate offers in practically every city in Poland. In Warsaw alone, there are some 200 transactions in this sector every year. However, the supply still does not satisfy the real demand.
Just a quick glimpse on the data gives a clear evidence that the Premium real estate sector is quickly growing. In 2018 alone, it increased by 9%. The “High Level Book” report published by High Level Sales & Marketing indicates that its value has reached over PLN 1.3 billion. It is estimated that it will increase by another 8-10% in the current year. Moreover, 80% of the Premium clients are Poles. The above-mentioned HLSM report looks into seven Polish cities and presents the following ranking: Warsaw comes first, with a growth to PLN 694 million; followed by Cracow with an increase to PLN 225 million, and Tricity that recorded a result of PLN 154 million.
The problems with constructing new Premium investments are caused by a number of reasons. One of them may be difficulty with finding the right plot of land. Upscale apartments or residences provide not only comfort, but also offer great locations. The most beautiful parks, key urban squares, sunrises and sunsets seen from the apartment’s windows – all of them are becoming a truly luxurious asset. Another important aspect is the size and quality of the space. That in turn translates into the price. What matters also in the unique character of the project, finishing materials, or various additional services that are purchased by the customers as status symbols and an evidence that the owners are members of a sort of elite club.
And who are the customers? They are mainly private business or family company owners, athletes or popular artists. Despite the above problems, the assortment of available premium apartments is still on the rise – and includes also real estates located on regional markets, away from Warsaw. However, all are aware that searching for best investment projects is a long process, that can be time-consuming, too. Therefore, it is beneficial to ask for professional assistance. One should also keep an eye on innovations. One of them is an elite investment program offered by LBC INVEST, which offers apartments prepared for a corporate lease by business customers, while the investors benefit from high return on investment.
Need for innovations
– Corporate lease is an interesting option for large companies, both international and domestic, as well as foreign institutions, – says Agata Karolina Lasota, a founder and CEO of LBC INVEST. These entities obviously don’t look for apartments for themselves, but they do need to accommodate their managers and employees on different organizational levels. From the investor’s perspective, renting an apartment to a large corporation staff offers high level of security and stable income for many years. Currently, the largest companies, institutions, and diplomatic missions commission our firm to search for premium accommodation options for their personnel and their families. It is worth mentioning, that we are again responsible for accommodating NATO officials.
Agata Karolina Lasota admits that the demand is higher than the supply, and finding a right flat is becoming increasingly difficult. That is the very reason why the decision was made to create a specialized department in the company dedicated to satisfying the needs of most demanding clients.
How does the program work?
The main aim of the program in to generate income from attractive real estate without the need to spend a lot of time on the process. It is based on cooperation of the developer, the investor and the company that brings together interest of particular parties. The developer has an attractive real estate for sale; the investor is interested in investing in that real estate, whereas LBC INVEST manages the paperwork and comprehensively prepares the apartment for future lease. It also provides a database of attractive customers and manages the leasing process on their behalf.
-“Developers whose investments scored the highest in a best Tricity real estates ranking prepared by our experts have been invited to participate in our program”, – explains Agata Karolina Lasota. And adds: “Insterestingly enough, corporate lease in Gdynia is the field our foreign partners are most interested in. Our experience shows that annual return on investment exceeds 6% and is much higher than in the case of short-term lease.Corporate leasing means also less paperwork, as vast majority of obligations is taken over by an expert company, such as LBC INVEST. It is the company that executes contacts with entities, as well as ensures legality of the entire process. That saves time for all parties involved, while the customer is sure to be provided with highest standards in all aspects of the service.
A special platform is being built to gather all data on most of the leading Polish and international companies from Tricity. The same platform will enable the companies to accommodate their managerial staff and other employees via an application. It is worth mentioning, that each member of this elite investment program who purchases a primary market real estate received a certificate and an access to an international corporate client database.
