The luxury real estate market in Poland is developing dynamically. Warsaw is an obvious leader, but this segment is growing in the TriCity as well, to the point where the demand exceeds supply. What are the prospects of this market, and why is it a good idea to entrust the sales of such real estate to an experienced agency that buys premium apartments? Agata Karolina Lasota, the owner of the Lasota Business Consulting agency, is answering these questions.
The market of premium apartments, i.e. those where one square meter costs minimum PLN 20 thousand, will increase by about 8 per cent in Poland this year. In 2017, this segment was worth PLN 1.3 billion, according to the report entitled ‘Luxury Apartment Market’ by EY. Is it actually so good?
There are varied data about this market in Poland and its growth dynamics, depending on the authors of a report as well as the threshold from which premium real estate is recognised. It is a fact, however, that this market is Poland is only being born and is growing quite fast. Each of these reports emphasizes also that considering the historic growth of prices and the social and economic situation in Poland, we will see the further increase in the volume of transactions, with the simultaneous rise of prices, in the following years. This concerns in particular real estate in Warsaw, which constitutes about 60 per cent of the whole market, but applies also to smaller, equally attractive locations, where the demand will grow as well.
However, we are still far behind the most important agglomerations in the world. A price of a square meter at top locations in Poland is almost 10 times lower than abroad.
We need to remember our place on the global economic map. We are shortening this distance, which is affected on the one hand by the growing demand in Poland and the following increase of price, and the completely opposite situation in the world. In developed countries the market is already saturated and we can observe the stagnation there after several years of growth, and in top metropolises even the fall of prices, because luxury real estate is more difficult to sell there. For example, prices in central London are already 15 per cent lower than five years ago. On the wave of the quickly growing interest in luxury real estate, too many buildings were constructed, while macroeconomic factors no longer favour that market.
So investors began to look for new markets?
That’s right. Poland, a dynamically developing country, where the quality of life is improving, while prices are still very attractive, is one of such markets. I have noticed this among my clients as well. The expertise of my agency is in corporate rental, and my clients are international businesses and institutions, corporations, and diplomatic missions. For them and the personnel they bring to Poland I search for apartments and flats for rent of a high standard. I also have numerous clients who are interested in buying premium real estate in the TriCity. Such apartments are purchased via our agency not only by wealthy people, who look for luxury premises, but also by investment funds.
What should be the characteristics of premium real estate?
Premium real estate includes luxury apartments, country manors, and historic tenements at best locations. In addition to the very centre of Gdańsk and Gdynia, the most popular districts in the TriCity are those that are unique, in the surrounding of green and recreational areas, featuring superb designs of buildings, and located by the coast. Real estate of this type is characterised by above-standard finishing, additional amenities for residents, i.e. a car park, a fitness room, and a relaxation zone, concierge services, excellent neighbourhood with access to elegant restaurants, and good access to business centres. We have such real estate available in our offer, and keep looking for new proposals as well.
Luxury living room
Let’s assume that I have such real estate. Why should I sell it only via your agency, instead of selling it openly in a large number of real estate agencies?
I think that the basic argument is the long experience of the Lasota Business Consulting agency in the service, sales, and rental of premium real estate and the collaboration with corporate clients in this respect. We simply have clients who are interested in such real estate. We do not need to look for anyone in particular; therefore, if real estate is actually attractive, we can find a buyer or tenant for it quickly. In addition, an exclusive agreement means 100% interest of the real estate agency. A seller has only one personal agent who will keep him or her constantly informed and can be sure that the agent represents only his or her interests. Such comprehensive customer service provides tranquillity, safety, and trust. An agent is responsible for the whole transaction, and a seller can relax, being certain that the person he or she knows personally will take care of the sale process of the real estate in a professional and effective manner.
AUTHOR: Max Radke PRESTIGE 92/2018
http://prestiztrojmiasto.pl/magazyn/92/biznes/nieruchomosc-premium-sprzedaz-tylko-z-fachowcem
