Real estate is invariably one of the most interesting investment alternatives, with plenty of pitfalls but also new opportunities for investors. – In 2024, we will start counting the carbon footprint more frequently and more precisely, and investments with a development plan and taking into account sustainable development goals will become even more attractive, even a standard on the market, predicts Radosław Jodko, investment expert at RRJ Group.
Investing in real estate – according to publicly available reports and surveys – is among Poles’ favourite investments. – This type of investment is much more understood by Poles than, for example, investments in cryptocurrencies, which you need to learn and understand the mechanisms governing this market, Jodko points out. He stresses that the key in investing is to take risk and time into account, as real estate in particular is a long-term investment.
Property prices are not falling, although they have been rising at an unprecedented rate in many cities in Poland. Due to the influx of Ukrainian citizens, the rental of flats is also still going strong – a flat in Warsaw is on a par with the price in Berlin. Does this mean that it is worth looking outside Poland for investments?
Investing in shares of real estate companies.
“Investing in real estate does not always have to mean just buying a flat or house for rent. Investing in bonds of property development companies is becoming more and more popular, the success of some listed companies proving their popularity. And investors are also starting to look at shares in European real estate companies, whose value is growing in the long term,” explains Jodko.
He points out that it is worth following not only analysts’ reports, but above all the Stoxx Europe 600 Real Estate index, which includes the 600 largest real estate companies and related industries.
Eco fashion enforced by law.
Another trend that will also be prevalent in 2024 is to invest in real estate with an overall plan for development and use in the long term. – Real estate is no longer a buy-and-sell, but we are starting to consider the overall plan and business model for the future use of an investment. Every detail counts,” points out Jodko.
– While this year’s attention to real estate in the context of sustainability goals was – especially for individual investors – occasional, next year I predict it will become standard. This is all because there is increasingly strong regulatory pressure on real estate to reduce CO2 emissions. Calculating the carbon footprint and improving the energy efficiency of buildings will become key, Jodko calculates.
Energy certificates are already mandatory – compulsory for new buildings and those being commissioned after modernisation.
In 2027, it will also be mandatory to show a carbon footprint for buildings over 2,000 sq m, but already in 2030, this provision will apply to every new building. The target is for all buildings in Poland to achieve a zero operational carbon footprint by 2050. New and retrofitted buildings are to achieve a zero operational and embedded carbon footprint by that time.
“For property investment, this element becomes crucial. Only investments that take fit-for-purpose into account make sense. It is not uncommon that this manages to maintain the rental price. It is also possible that the legally enforced wave of renovations will fuel a construction boom,” believes Radosław Jodko, investment expert at RRJ Group.
