It demonstrates that, contrary to last year's predictions, the pandemic has not stopped the development of the market, in particular the premium sector. Buyers note that during the crisis, luxury real estate is one of the few safe options to invest a large amount of capital with a guarantee of steady profit. Examination of the prices as part of the luxury flat segment between 2014 and 2021 shows as much as a 68% increase in the average price of this type of property, while the increase in the average price for the entire primary market was 52% over the same period.
FOKSAL – LUXURIOUS AMENITIES
An example of a run of good luck in the luxury segment is the excellent sales of the Foksal 13/15 tenement houses. The historic, 19th-century buildings just off the Royal Route have undergone a unique revitalization on a national scale which was carried out by a private investor – Ghelamco. At Foksal, a private spa, guest rooms, a roof terrace, and concierge services are available to residents.
The renovation of the tenement houses was completed in 2020, and now already 80% of the flats have been sold. What is even more, the building owner reports that only until September the value of sales at Foksal was 68% higher compared to the entire last year. Clients are also more likely to buy larger flats, whose prices range from PLN 35,000-39,000 per 1 sqm. The investment also offers high-class commercial premises on the ground floor with access to one of the most representative streets in Warsaw. The premises, which are nearly four meters high, are a perfect place for law offices, art galleries, and showrooms, which need an appropriate location and setting for premium clients. “Currently, there is no alternative project of the same class as Foksal on the market,” says Piotr Łukasik, head of the residential department at Ghelamco.
FLISAC – MODERN LOCATION
The success of Foksal made the investor enter the premium real estate segment even more daringly. In June, Ghelamco completed Flisac, an apartment building in Powiśle, right by the Świętokrzyski Bridge and the boulevards, where most customers did not await the opportunity to have a look at the finished building before purchasing it, as almost all of ten commercial units and 85 flats have been sold. Currently, there are only two flats of 90 and 100 sqm respectively, available.
Flisac is located in the heart of Warsaw's most fashionable district, right next to the Centrum Nauki Kopernik underground station, with a view of the Vistula River and the Warsaw Mermaid. The building is distinctive for its perfectly lighted flats and a green recreational terrace on the roof with the only such view of the Vistula River in Warsaw.
GROEN – BACK TO NATURE
A new trend has also emerged because of the pandemic. Varsovians are increasingly choosing suburban homes as an alternative to flats. The need for more space and additional rooms has given rise to a tendency to exchange a flat in a block of flats for a house with a garden in a location with close access to the city center.
“Such interest can be seen as part of our new project, the GROEN Konstancin single-family housing estate near Warsaw. Within a year, even before completing its first stage, all forty-eight houses were sold. This month we started selling houses as part of the second stage and very soon another six houses have found new owners,” says Łukasik.
Groen estate is located next to the Botanical Garden of PAN and the Culture Park in Powsin, near the nature reserve – Kabacki Forest. The space of the Groen project has been designed to resemble a friendly Dutch-style housing estate. It is a haven with picturesque ponds, a sports field, and carefully designed greenery. Residents will also have access to private gardens ranging in size from 183-578 sqm. The houses themselves, in turn, offer floor areas ranging from 176-206 sqm. As part of this project, the houses are available from PLN 1,280,000. This means that for the price of a 4-room flat in Warsaw, you can buy a house with a garden in Konstancin with a fireplace, a bathroom with a window, a wardrobe, and an attic providing great arrangement options.
A CHANGE IN THE MARKET
Today, buyers are more aware of their needs, they pay more attention to the comfort of living. They focus on location, quality of finishing, and ecology. They are looking for large spaces and additional amenities, as well as considering how lucrative an investment their own property can be. All this translates into an increased interest in premium real estate.
With less and less space available for housing in prestigious locations, the number of planned luxury projects is not increasing, and future offers from the secondary market are bound to be significantly more expensive.
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