KNF, UOKiK warn against investing in apartment/condo-hotels

Investments in properties offering short-term rentals (including so-called apartment hotels and condo-hotels) entail the risk of losing the invested funds, the Polish Financial Supervision Authority (KNF) has warned. The Office of Competition and Consumer Protection (UOKiK) has also warned against the risks related to investing in such projects.

“Apartment hotels entail a risk – for example when the developer promises a high rate of return but does not mention additional fees or finances the construction exclusively from consumers’ payments. Before one signs a contract, one must check the credibility of the developer,” said Marek Niechciał, the president of UOKiK.

Companies that build this kind of schemes are usually not supervised, the financial supervisor warned.

(ISBnews)