Developers going to conquer other sectors

Developers operating in the commercial real estate sector are increasingly recognizing the potential and attractiveness of residential real estate. The pandemic did not negatively verify these beliefs, on the contrary, this market turned out to be immune to turbulence. Investors focus mainly on projects with apartments for rent, but not only.

"It is natural that developers are looking for new opportunities. Diversification allows for greater flexibility in a changing environment. The last example is Apsys. In Poland, the company is associated with the commercial sector, but in France, it successfully implements projects with other functions, including housing. Even before the pandemic, in 2019, the Polish company announced that it would expand its operations to include office property management and residential investments. Entities operating in the commercial real estate sector are increasingly recognizing the potential and attractiveness of residential real estate. Although apartments for rent are currently very popular among investors, companies that adjust their business profile rather respond to the typical demand, resulting from the desire to own a flat," Agnieszka Mikulska, CBRE housing market expert, said

There are many examples of diversifying the real estate portfolio. Another company is Atrium, which is traditionally present on the retail market and starts operating in the rental housing sector. In turn, Immofinanz has announced a return to the residential market with a plan to extend apartments in shopping centers. For now, this applies to the buildings of the Stop Shop chain in Austria, but they are also in Poland. The EDS Group announced the creation of EDS Residential (next to EDS Retail), and the Tonsa fund, after being involved in an office project in Gdańsk, announced the implementation of a project in the rental housing sector. 

"It is worth emphasizing, however, that the diversification of development activities is ongoing, depending on the market environment," Agnieszka Mikulska added.

(WBJ)