More than 2 million Poles lived in rented flats as of the end of 2016. It is estimated that by the end of 2017 this figure will increase by 10 per cent. This dynamic growth is good news especially for those who invest in real estate, as the demand determines the supply. One of the best real estate investment markets in Poland is the TriCity, says Agata Karolina Lasota, the owner of Lasota Business Consulting agency.
According to statistical data, the share of rental in the domestic market of fulfilling residential needs is at about 5%, while in the Western Europe this level reaches 15-20%. Poland is chasing Europe. Does it mean that investing in real estate has good prospects?
Real estate has been considered to be a safe and perspective form of investing, and this has not changed. Today, it is not just an investment that brings us profits from rental, but also a good way of securing deposited capital. And if you buy your real estate well, there is a chance that its value will increase in time. From my business point of view, premium and luxury real estate enjoys great popularity, both among those who think about profits and investors who are interested in rentals.
Where do better-off people rent flats in the TriCity?
According to my experience from serving my clients, there are two most desired locations in Gdynia, namely Kamienna Góra and the seaside part of Orłowo. In Sopot this is its central part and the Lower Sopot, close to the beach.
And what about Gdańsk?
Gdańsk is highly diversified. On the one hand, there are apartments in the coastal zone that are in great demand, from Jelitkowo to Przymorze, in developments such as Tre Mare, Nadmorski Dwór, and Neptun Park. On the other hand, there are atmospheric tenements in the old Oliwa. We can observe the growing interest in flats for rent in Wrzeszcz, with its combination of historic buildings and modern developments in Garnizon, as well as locations with extraordinary atmosphere in the Old Wrzeszcz near the Strzyża stream.
And there are things happening finally on the Granary Island.
The Granary Island as well as the Ołowianka Island are very prestigious locations. The developments there, especially Deo Plaza, Granaria, and Brabank, are stimulating strong interest. An attractive location and a high standard of the investment guarantee attractive rental, both in short- and long-term. The most profitable, though, is a long-term corporate rental.
Exactly, in one of our previous discussions you stated that long-term rental gives a higher return rate.
This stems from my professional experience. Short-term rental involves the non-stop turnover of tenants. It means that the wear of the flat is heavy and you need to dedicate more of your time to running the business, even if the management of the apartment is outsourced. My expertise is in long-term corporate rental, where the annual return rate is above 6%. The key is to find a tenant who will provide the continuity of tenancy for a longer period, and thus guarantee constant revenues, regardless of the season. Your client is a company, a corporation, which rents a flat for its executives or managers. Due to the characteristics of tenants, the risk of default on rent or non-contractual occupancy, etc., is minimised.
What flats are in high demand among corporations for their personnel?
First of all, at prestigious locations, of a high standard, and completely furnished. Convenient access to infrastructure is important, which includes stores, entertainment, fitness clubs, schools, and kindergartens. What matters is also the comfortable way to work, usually the most important business centres of the TriCity, such as Alchemia, Olivia Business Centre, Tryton, Garnizon, Neptun Office and Łużycka Office Park and the Pomeranian Park of Science and Technology in Gdynia. We have such apartments for rent in our offer, and we look for more such flats all the time for our clients.
Does it mean that the demand is constantly increasing?
Definitely yes. I can even say that the demand exceeds the supply at present. As regards long-term rental, there are very few three- and four-room apartments available on the market that would be of a high standard and located in prestigious estates. There are few attractive homes also. My clients often ask about real estate of this type, and it is most difficult to meet their expectations in
Author: Max Radke PRESTIGE 86 02/2018
http://prestiztrojmiasto.pl/magazyn/86/biznes/wynajem-nieruchomosci-premium-popyt-przerasta-podaz
