Real estate investment is one of the favorite types of investment for Poles, but investors also still feel confident in this market. – It is, of course, still one of the most prudent and chosen investments. But we see several changing trends in this real estate investing. Three of them stand out,” points out Radoslaw Jodko, RRJ Group investment expert.
The Polish real estate market is of interest to investors throughout the CEE region mainly because of location and price.
“Inflation is, of course, an element everywhere that puts pressure and holds back many investor decisions. But on the other hand, we see that there is a growing tendency to move manufacturing operations closer to the end user so as to ensure smooth supply chains, making Poland an attractive place to invest,” emphasizes Radoslaw Jodko, RRJ Group investment expert.
Taking advantage of the natural environment:
Certainly, adequate surrounding infrastructure is also still important. But more interesting are the little-noticed, or not always explicitly named, trends that determine investor decisions. The first of these concerns the revitalization of sites, using the natural surroundings to maximize potential. This is particularly important in recreational areas – in the mountains, by the sea or even by the lakes. So we see investments in the Mazury region, which not only fit in with the climate of the place, but also use the potential of the place, creating, as it were, added value for investors,” points out Jodko.
Green construction:
He cites the detailed consideration of the decarbonization process as another. – Regulatory pressure certainly helps in achieving climate goals in Europe, but investors have also already noticed that in the long run it simply pays off more, so this element plays a very big role. Even if today – due to the worse economic situation – voices are getting louder in the European Union that high construction costs are reducing availability, the expert explains.
Longer investment horizon”
“And finally – maybe not such an obvious element again, but one that plays a role – is the plan to use the investment in the long term. So will it be a rental investment, who will take care of it, what are the handling costs, what is the plan for use? Investors are no longer just planning for construction, for a return, but in many cases they are considering how to use the investment in several development, use or utilization plans, and what will pay off the most. We can, of course, test a selection of these possibilities, such as long-term rental, short-term use or current use with a view to selling in some time,” concludes Radoslaw Jodko, RRJ Group investment expert.
What to watch out for?
Looking globally, what is the biggest unknown today? Price increases, inflation and uncertainty about interest rates. – It’s always worth reminding ourselves that investing in real estate means locking up money for a long time, and it’s never obvious whether we’ll be able to liquidate a property if necessary, Jodko warns.
Author: Radosław Jodko, Inwestor – RRJ Group
