Investments in older, well-located apartment buildings are becoming more popular across Poland, as local groups look to redevelop them into high-end residential or offices. “These types of investments require advance technical knowledge, as well as specific law regulations,” Mzuri Investments board member Jarosław Kalinowski told the business server parkiet.com. He said that while they are risky, such investments have high returns.
The trend first started two years ago with local investors buying old apartment buildings for less than €5m, and renovating them into high-end resi space that they rent out and eventually sell for up to PLN 12,000 per sqm. Bartosz Turek of Lion’s Bank says such deals make up nearly half of the total transaction volume on the Polish residential market. “These apartments are a unique product, and this is why they’re unlikely to lose any of their value in the long-term,” he says.
The local fund TFI Forum has recently picked up on the idea, acquiring buildings for more than €15m for renovation. Individuals can take part in such investments with a minimum investment of PLN 200,000. The office developer Ghelamco has recently started a similar project on Foksal street in Warsaw.
