Does the deficit of land in large cities encourage companies to look for alternatives? Do developers plan to implement investments in smaller towns and suburban locations? Will they be involved in mixed-use projects or projects based on the revitalization of existing buildings? The survey was developed by the real estate website dompress.pl
Andrzej Oślizło, President of the Management Board of Develia S.A.
It is difficult to implement investments in smaller cities in the current market situation. While the availability of land is much better there, the ratio of the price acceptable to customers to the real construction costs is a serious barrier. It is difficult to implement a project in a location where buyers are able to pay no more than 7-8 thousand. PLN per square meter of a flat, and general contracting expenses amount to 5-6 thousand. PLN per sqm If we add outlays for a plot of land, financing or operating costs, such an investment becomes unprofitable.
I would rather expect that developers will expand the offer of cheaper apartments in satellite towns on the outskirts of large agglomerations, such as Piaseczno and Ząbki near Warsaw or Wieliczka near Krakow. The implementation of such projects involves relatively lower risk. Our company does not rule out development in this direction. We are also open to the implementation of mixed-use projects or revitalization of existing facilities.
Adrian Potoczek, development director at Wawel Service
We have land banks all over Poland and our own funds, allowing for the implementation of further investments. One of our newest investments will be built in Zagłębie Dąbrowskie, about 15 km by car from the center of Katowice. It is an ideal investment for people looking for a break from the hustle and bustle of the city, who value peace and the proximity of green areas. The investment combines green surroundings, extensive infrastructure and fast communication with larger urban centers in Silesia. At the moment, we are not planning to build mixed-use complexes or implement projects based on the revitalization of existing buildings.
Joanna Janowicz, managing director at Constructa Plus
We hold the view that urban sprawl is unfavorable in many ways. From the depletion of natural green areas to underdeveloped public transport and traffic jams in the suburbs. However, we are aware of the reasons why this process is intensifying more and more. We believe that there is still a lot to do in Poznań. There are many buildings in need of revitalization, which also includes the urbanization of brownfield sites. These are issues that lie in the sphere of our investment interests. New housing projects in the city center should, in addition to housing development, include revitalization and the establishment of new green areas to increase the comfort of living in the city.
Małgorzata Ostrowska, director of the Marketing and Sales Division at J.W. Construction Holding S.A.
For years, the motto of J.W. Construction is the stability and safety of operation, which we achieve primarily through the consistent application of the principle of not buying expensive land at all costs, because we have a wealthy land bank built over the years. We build in various regions of Poland, which gives us comfort and, to some extent, protects us against economic fluctuations. We are currently running investments in Warsaw and the Warsaw agglomeration – in Pruszków (Centrum Station) and Ożarów Mazowiecki (Villa Campina), as well as in Szczecin (Nad Odrą), Gdańsk (Osiedle Horizon) and Chorzów (Osiedle Kościuszki). We plan to launch another, third investment in Szczecin and in a suburban location, near Krakow.
Joanna Chojecka, sales and marketing director for Warsaw and Wrocław at the Robyg Group
We are looking for land in various locations and we do not rule out entering new cities. However, since 2022, we have changed our strategy in connection with the acquisition of a new owner and strategic partner – Tag Immobilien. Our goal is to have 20,000 apartments for rent by the end of 2027 and at the same time we plan to continue selling 2,500 apartments per year.
Boaz Haim, CEO of Ronson Development
For years, we have been concentrating our activities in Warsaw, Wrocław, Poznań and Szczecin. These cities are very attractive to customers, so we will also enrich them with offers from the PRS segment. We believe that good knowledge of these markets allows us to provide customers with products tailored to their needs, in good locations, surrounded by greenery, using high quality and building materials. In the case of PRS, we respond to the growing demand for rental. Thus, we focus our attention on expanding the land bank in or within these agglomerations. Near Szczecin, in the Kołbaskowo commune, a large estate Nowe Warzymice is being built, and in May we launched the pre-sale of the EKO Falenty investment near Warsaw, where 42 terraced houses will be built. Both of these projects are built near large cities and are well connected with their central parts. In both, we focus on ecology. Our land bank is currently secured on over 5,500 premises with a total area of over 313,000 sqm.
Michał Witkowski, sales director of Lokum Deweloper S.A.
We are present in Sobótka, a town with great potential and extensive urban infrastructure. A drive to Wrocław, an important center of professional activity, takes about half an hour. It is also possible to use bus connections, and recently, the capital of Lower Silesia can be easily reached by train, thanks to the new, direct railway line. It is in Sobótka, in an extremely charming location, right next to a landscape park, where Lokum Monte is being built, an intimate estate with a private wellness zone. The investment area includes relaxation zones full of varied greenery, as well as playgrounds for children. The architectural concept refers to the place where the estate is located. As part of the investment, functional two-, three- and four-room apartments with an area of 39 sq m are offered for sale. up to about 100 sq m Some of them are equipped with gardens, wardrobes, mezzanines or two bathrooms. The diversified offer makes the investment interesting for singles, couples and families with children, as well as attracts people working remotely and looking for a quiet, secluded area.
Zuzanna Dobra, Commercial Director at Eco Classic
Yes, we are planning mixed-use projects and investments in smaller urban centers. With rising prices in large cities and the proliferation of remote work, smaller and cheaper locations have grown in importance. However, the growth of the primary market in small towns also has its limitations due to the lower absorption capacity and the fact that the implementation costs are comparable throughout the country. It also happens that in smaller centers, where developer activity has increased in recent years, construction costs are higher than in Warsaw, due to high demand and a smaller supply of construction companies.
Janusz Miller, Sales and Marketing Director of Home Invest
So far, we have focused our activities solely on the Warsaw property development market. We have been operating on it for over 17 years. We are convinced that Warsaw is a place where apartments will always sell. We have a large land bank, so we are optimistic about the future. However, recently we managed to obtain land in one of the cities located near Warsaw. Therefore, we plan to start our first investment outside the capital.
Dariusz Nagórski, Investment Director at Aria Development
We carefully observe changes on the market and we are open to preparing projects in various formulas. From the very beginning of the company’s existence, we have been implementing investments on the outskirts of cities. We are building housing estates surrounded by greenery and right next to the capital’s most important communication routes, subway and suburban railways, which ensure quick and convenient access to the city center. It seems to us that due to the low supply of land at reasonable prices, smaller cities will attract the attention of developers.
Piotr Ludwiński, Sales and Customer Service Director at Archicom S.A.
We must remember that investments are placed where the client is, and not where there is land. Difficulty in obtaining an attractive location in the centers of large cities may direct developers’ activities in two different directions. The first is the selection of new places for investment, the fringes of regional markets and smaller ones, if there is a demand for them. The second, much more interesting one, which in the long term may significantly change the real estate market, is the revitalization of the existing buildings, the oldest ones that do not meet the requirements related to safety, thermal insulation or ecology. As a company, we are open to new opportunities and consider many options from the perspective of a potential customer. We want living in a new place not to be associated with a compromise, but with progress and change for the better.
We are currently focusing on the implementation of two commenced investments in Warsaw: Miasteczko Jutrzenki and Fabrica Ursus, which was created as a result of the revitalization of historic buildings. We are also starting the construction of the new My Forest estate, located in Warsaw’s Białołęka district, with a private forest of 4,000 sqm available only to household members. We also purchased land for another investment in the charming neighborhood of Kępa Potocka with access to the river.
Source: dompress.pl
Photo: Develia, Ujescisko Vita, Gdansk
