Intensive beginning of year in investment land market

According to Emil Domeracki, director of the Investment Land Department at Colliers, after several months of stagnation related to the pandemic, when investors withheld spending and decisions on expansion and expansion of the portfolio, the moment of increased activity on the investment land market has come. In particular, in sectors perceived as safe, including housing and logistics. Plot prices, despite the decreasing supply index, especially in large cities, remained stable.

The Covid-19 pandemic brought trading activity to a halt for most of last year. Developers, usually planning long-term investments, look for land for their implementation in advance. Therefore, in recent years they have made purchases of plots, securing large areas.

"Thanks to the accumulated land banks, most entities took a calm approach to the economic turmoil. Investors perceive land investments as a promising capital investment, as over the years and with the decreasing supply of attractive plots they will increase in value. This perspective means that there is a growing interest in areas requiring longer legal, technical or administrative preparation, which after regulating these issues will become even more attractive to potential buyers," Domeracki assessed.

In his opinion, investors are also encouraged by the greater activity of state-owned companies and local governments in investment processes, which we have been observing since last year. The companies and local governments have noticed that one of the channels for generating income for the commune is the sale of land and they attach more and more important to the proper preparation of areas for investments, e.g. in terms of local development plans, logistics facilities, infrastructure, grants or various types of incentives, e.g. tax incentives.

"Cities are not left behind, which, despite the often more complicated legal or administrative situation of plots, are increasingly professionally approaching the preparation of land for investment. Favor of cities and communes towards investors, sensitivity to their needs, as well as perceiving opportunities broader economic cooperation can positively influence the market development," the expert concluded.

(WBJ)