A home for all seasons

With demand for residential developments at a steady high and the actual supply of such projects continually insufficient, purchasing an apartment from a developer isn't always possible. This is exacerbated by the amount of time spent waiting for an investment to mature, from the planning stage to the grand opening.

Thus, buying an apartment from the secondary market could be a solution. Care must be taken, however, to make sure that older apartments meet all quality standards.

"I would suggest buying an apartment in a building which was constructed between 1995 and 2005, because we can be sure that anything likely to have broken has already done so," said Aleksander Scheller, president of the Polish Real Estate Federation (PFRN).

Scheller also advised against buying apartments located in pre-fabricated tower blocks built in the 1970s. "The technological lifespan of that type of building is 50 years and its market value will decrease even faster," he commented.

Purchasing an apartment as an investment should be preceded by thorough consideration of its location, size and seller - whether it is bought from a developer or on the secondary market.

Hanna Hahn of CB Richard Ellis Polska noted that buying a new apartment, rather than an older one, is more profitable because it should be easier to sell in the future.

"An apartment that was acquired from the developer should guarantee its modernity in a few years time," said Hahn. "However, purchasing such an apartment means a long period spent waiting for the completion of investments, which means that for some time the only profit will be made on the growth of market value and not renting."

Hahn, however, added the caveat that investing in an apartment requires choosing the best possible location.

"In this case, secondary market offer might be often a better one." she noted.