By Mateusz Wodejko, CEO of Powiśle Park Sp. z o.o. , Investor in NA POWIŚLU Apartments
Poland’s luxury residential real estate market is extremely tempting for investors – at least those who know that it is flourishing. With approximately 160-180 transactions of PLN 440-460 million (KPMG, REAS, Luxury Real Estate in Poland, 2015) it is a relatively small, but still a highly profitable sector that should be considered when managing one’s capital. Which residential projects offer the least risk? Here are some suggestions that are worth careful consideration.
Location is key when discussing the luxury real estate market in Poland. Contrary to what developers usually claim, architectural design or amenities are not only of importance to prospective buyers, but also strongly linked to their taste, which is the most subjective of all factors at play (a point worth taking into account if you want to let the apartment or sell it at some point). No matter how comfortable it is to have a private gym for residents, at the end of the day it is the location of the real estate that defines one’s lifestyle. Business meetings, visits to state offices, social gatherings, theater nights, shopping – these events are not as rare as seeking the help of a concierge or taking a swim in the pool. That is why the closer you live to business institutions or high-end restaurants, the better.
Even in the capital city, which constitutes the biggest luxury real estate market in Poland, it is possible to find luxurious properties that not only incorporate all the features every affluent buyer expects from the prestigious property, but are also located in such a way that suits the taste of the majority of clients. It might require some effort, but one can still invest in an apartment which is close to everything that matters – the city center, business institutions such as WSE, state offices, cultural venues, luxurious boutiques, the Old Town and even municipal parks, which are in the center of Warsaw.
Location is what defines luxury, especially in the Polish residential market, which is still underdeveloped when compared to its western counterparts. When investing your money in property, it is always safer to follow in the footsteps of the pragmatics and choose real estate for its features that will never go out of fashion.