Bare necessities
For years, those looking to buy a new apartment in Poland have had to scrutinize floor plans long before the launch of construction work. Moreover, when they finally collected the keys to their new domicile, the forlorn sight that greeted them was bare concrete and walls bereft of appliances. This barren, unfinished state, the so-called developer's standard - or, as some refer to it, the "Warsaw standard" - is a Polish peculiarity, rarely seen in other European countries.
"The majority of apartments sold in Europe are fitted out. This is the case, for example, in 100 percent of our investments in the Czech Republic," said Douglas Noble, director of Orco Property Group in Poland.
While there are a few developers who have begun to offer fitted-out apartments, this is still a novelty. Even when fit-out is on the menu, most firms present the service as a higher-priced option, though Orco's Złota 44 and Klonowa Aleja developments are exclusively offering finished units. The firm has noted a growing interest in the fitted-out apartments they sell and believe that this kind of offer is the way of the future.
Personality quirks
For the moment, however, it seems the majority of Poles are still not comfortable with the idea of buying an apartment they could move into right away. According to a study conducted by CB Richard Ellis and Murator Expo in 2007, only 25 percent of those looking to buy an apartment would consider buying one that had been fitted out by the developer.
Experts attribute this prejudice to the character of the nation and the legacy of the communist system, as well as a number of popular misconceptions. "Poles have a specific approach which is related to the history of the country. They don't like to have anything imposed on them," said Agnieszka Jaworska, marketing and sales manager at Wilanów One.
"We have a very individualistic approach to everything," said Anna Terlecka, sales manager in CB Richard Ellis' residential department. She explained that many affluent Poles travel abroad on holidays and often want very specific things in their apartments, similar to those they have seen on their travels.
The DIY mentality
Experts agree that since many Poles move house just once or twice in their lives, they take an active interest in finishing it and often feel they know what needs to be done best. Moreover, people often believe that if they organize the fit-out of their own apartments, they will get better quality for lower price and the work will be more efficient.
However, Jaworska warned that reading home-decor magazines and visiting DIY stores cannot turn anyone into an expert. The Polish idiom "Polak potrafi" ("where there's a Pole, there's a way") does not always apply.
Home buyers are also largely unaware of the conditions which developers offer for fit out. Clients who choose this option receive a guarantee on the work when they sign the contract, something they are not very likely to get if they finish the apartment themselves. "[If we go for this option] we get a product with a guarantee, but we don't often realize that. We still subscribe to the belief that if you do something yourself it will be cheaper and better, but it's not always the case," said Terlecka.
Developer-set standards
In terms of the cost involved in fitting out an apartment, it obviously depends on the client's requirements. Developers generally offer three furbishing standards, from basic to luxury, and are flexible about allowing apartment buyers to mix and match features from each of the standards. Buyers can also choose to have all kitchen appliances installed in their apartment and, crucially, they only pay seven percent VAT on the entire service, rather than the 22 percent they face when doing it themselves.
Poles' persistent reluctance to go for finished apartments encourages many developers to continue to offer the bare minimum. "It's a headache for a developer," said Jaworska, referring to the work involved in furbishing apartments. Terlecka added that, "logistically it is a huge undertaking."
They agreed that many developers are focused on selling as many residential units as possible and on the margins they will reap. Fitting out, on the other hand, involves a significant amount of work for comparatively little money. For those developers who offer fitted-out apartments, it is mostly a matter of prestige and quality. Still, as long as the clients are content with what they receive, developers are unlikely to offer what other countries consider the norm.
Things will change
Things are beginning to change, however, and a number of developers who have included fitting out as part of their offer have been encouraged by interest from prospective clients. Jaworska believed that the popularity of their fit-out option in Wilanów One has mostly been due the demographic of their client base.
"These are young people in their 20s and 30s, they work a lot and have no time to organize and supervise a group of builders," she said. "Our intensive lifestyles nowadays don't leave us and our families enough time to rest and relax. We have no time to wait for our future apartment to be furbished and ready to move into," added Douglas Noble.
Experts believe that changing lifestyles and growing awareness of what developers can offer will create more demanding consumers. "This is mainly a matter of what we are used to. But there is a tendency [for change]. This is just the beginning of a trend, and in 10-15 years we won't be buying apartments in the developer's standard," said Jaworska.
