Land market under the sign of cooperation

Despite a good start to the year on the investment land market, the political, economic, and financial turbulence we have been experiencing over the last few months has not been without effect on investor activity. However, a temporary halt in processes, at a similar level as in March and April 2020, when the Covid-19 pandemic reached Poland, does not mean a complete standstill. Investors and developers, looking for the best solutions to carry out investments at the current time, are increasingly opting for indirect sales and entering into joint venture cooperation.   

"Last year turned out to be a record year in terms of investor involvement in the Polish investment land market when the total volume of transactions amounted to nearly PLN 8 billion. The first months of 2022 allowed us to forecast the continuation of this positive trend," Emil Domeracki Head of Investment Land at Colliers, said.

"The coming quarter will be marked by a change in the dominant transaction formula on the investment land market from direct sales to indirect sales. We are currently involved in several processes of creating development or development-investment marriages based on a joint venture formula – among others in Warsaw, Łódź, and Wrocław. They concern the joint implementation of residential and service projects, with a predominance of the residential part. This is an attractive solution in particular for smaller developers who are facing a decline in sales dynamics, an outflow of individual customers, but also an increase in debt service costs or obtaining financing," he added.

(WBJ)