Home loans made available to low-income buyers
A Warsaw-based residential developer and a local bank launched a housing program this month that grants apartment loans to individuals and families earning at least zł. 3,000 gross a month.
The "Start" program is the work of Dom Development and Bank Ochrony Środowiska (BOŚ), which hope to tap a sector of the market that until now has been largely ignored by lower income home buyers.
"Our mission is to search for solutions that would help individuals and families who previously couldn't afford to buy their own four walls to become independent," said Jarosław Szanajca, president of Dom Development.
Under the "Start" program, people looking to purchase a 30-square-meter flat would pay an initial fee of zł. 3,300 followed by 300 monthly installments of about zł. 420 over 25 years. Depending on the size of the residential unit, apartment buyers will have to increase the initial fee to zł. 7,875 and installments of zł. 895 a month for a 70-square-meter flat. "It's much less than for a mortgage loan and our clients don't have to go through the paperwork hassle they would have to deal with at a bank," Szanajca said. For a mortgage loan, a monthly installment of about zł. 1,660 would be needed for a zł. 130,000 home loan taken for 25 years with Powszechny Bank Kredytowy.
The project's first residential development is the "Derby" in Warsaw's Białołźka district, which offers three apartment sizes: the single-room "Junior," the two-room "Duet," and the three-room "Family." The cost per square meter ranges from zł. 2,200-zł. 2,470. Monthly payments depending on size range from zł. 140 to zł. 180.
Richard Quigley, vice president of REAS Konsulting, a Warsaw-based residential consultancy, said that because of the economic slump developers realize they have to be more aggressive when selling their current stock while broadening their client base. "A program targeted to young couples and singles is clearly trying to do just that," he said. "Remember that until a year ago, most everything that was built was sold quickly, especially small, popular-price units."
Polish Construction Journal to launch
Roberts Publishing, a Czech Republic-based company, plans to launch a Polish version of a bimonthly Czech real estate magazine early next year.
The Polish Construction Journal, which will have an initial print run of 3,000-4,000 copies a month, will target general contractors, developers, banks, construction suppliers and real estate agencies.
"I think it's more prudent to start small and to keep our figures at a realistic level, especially since the market is in a downturn," said Robert Fletcher, managing director of Roberts Publishing. "What's important for us at the outset is to create a quality product that is relevant and respected."
He added that the economic downturn is not enough to prevent the magazine's launch. "It's a sign of how serious we are about the market," he said. "Anyone can invest during the boom times, but we see the long-term potential of Poland's property market."
The Polish Construction Journal plans to hire about 10-15 employees, Fletcher said. The publisher also hopes to turn the magazine into a monthly after about a year.
Darren Battle, managing director of Anglo-American real estate agency Jones Lang LaSalle, said there is a gap between Polish real estate magazines and those in Western markets for quality market information. But he remained cautious about the new product. "It's hard to predict," he said. "We'll wait and see how they do here."
Jones Lang LaSalle suffers in Q3
Jones Lang LaSalle reported a third-quarter loss of $6.2 million on turnover of $216.6 million, down 3% from the same period last year.
As a result, the New York Stock Exchange-listed real estate consultancy plans to introduce a savings program next month aimed at trimming at least $45 million from the company's expenses. It also announced that it will lay off by Christmas more than 600 of its 7,500 employees worldwide as the company responds to reduced turnover.
"Due to uncertainty regarding the timing of a recovery from the current global economic environment, we have instituted an extensive review of our operating plans for the remainder of 2001 and for next year," said Stuart Scott, chairman and chief executive officer of Jones Lang LaSalle. "We have a goal of reducing costs on an annualized basis by at least $45 million, while continuing to remain focused on constantly improving client service levels."
Darren Battle, managing director of Jones Lang LaSalle's Warsaw office, said the capital's operations would not be included in staff cuts as restructuring has already been done. "Nobody will be fired in the office," he said. "We'll continue as we are."
Announcement
Exbud Skanska posted third-quarter financial losses of zł. 225.1 million ($54.9 million) following a first-half profit of zł. 4.5 million ($1.1 million). The construction group's president, Leszek Walczak, resigned as a result of the loss and has been replaced by Jan Gunnar Glave of Sweden. Glave announced last week that Exbud plans to lay off 4,000 of 11,000 employees in all of the company's Polish subsidiaries.
Ania Staniszewska
