Contrary to last year’s concerns, the pandemic has not turned the housing market upside down and there is no indication that this would change. The real estate development industry is favored by the persistently high demand for apartments amid still limited supply, according to Shragi Weismann, CEO of Aurec Home.
Low interest rates and affordable housing loan conditions have a positive impact on demand. Banks that tightened their lending policies as a result of the first wave of the pandemic and unrest over the economic situation, have now significantly eased it.
Most financial institutes, including the NBP, are more optimistic today compared to the beginning of the epidemic, believing that the damage to the economy will be less than expected.
and forecast GDP growth by approx. 4%.
Our clients are mainly people who buy flats for their own needs, the rest are small investors who invest their savings in real estate. Flats, houses and plots of land are still considered a safe investment with a forecast of further price increases. For now, we do not see much interest in flats by foreign investors, but this will change after the pandemic restrictions are relaxed. Smaller foreign investors will be very interested in housing in Poland, and larger ones are already looking for opportunities in the form of endangered offices, warehouses or hotels. In my opinion, after the pandemic, foreign investors will have a big impact on the commercial real estate market.
It is difficult to assess the further growth rate of housing prices. I think that the current year will bring a 3-4% increase in them annually. Such market conditions will persist for the next one or two years. Let us remember that housing prices are influenced by demand. In addition, the prices of building materials continue to rise.
Developers would build a lot more, but unfortunately they are struggling with lengthy administrative procedures and low land availability. The number of vacant plots in Warsaw is lower than a few years ago. But new areas are developing, such as Ursus, Italy and others located a little further from the center, as the public transport system improves. Moreover, the new trend of working from home, which I believe will remain with us for a while, creates new housing needs. Customers are looking for flats in enclaves of greenery and peace that are well connected with other parts of the city.
Such an estate is called “Miasteczko Jutrzenki”. The apartments from the first stage, the construction of which we started in July last year, have already sold out, and the interest in the second stage has exceeded our expectations. This is due to the good value for money ratio and the amenities we offer, i.e. such land development that the residents can play sports, rest among greenery and establish neighborly relations. Customers are attracted by environmentally friendly solutions and for them, such as greenhouses, where residents will be able to grow their own vegetables or flowers, or photovoltaic panels that will provide energy to the common areas. Residents will have at their disposal two gyms, a shop, a kindergarten and other services. It is worth remembering that the aesthetics and functionality of the housing estates are a source of satisfaction for the residents.
