Luxury in the suburbs
Many local residents also perceive such upmarket developments as a potential investment for the future.
"There is increased demand in luxury residential investments, particularly among foreign investors, mainly from the UK, Ireland and Spain, who purchase such residences in order to later rent them out," said Anna Grzywaczewska, market analyst with real estate agency Ober-Haus. "The same trend can be observed among Polish landlords," she added.
Although positive trends on the local business scene are now often attributed to the nation's recent EU accession, Grzywaczewska believes that the interest in luxury residential developments goes back longer than just six months.
"This trend did not strengthen suddenly with the moment of Poland's accession but was increasing gradually over the last year or so," she said.
Grzywaczewska agrees, however, that the increased demand at the beginning of the year, caused by purchases made to avoid the 22 percent VAT on construction materials, has pushed real estate prices higher than before.
"There was unnatural demand for residential properties in all segments of that market right before May 1st and the introduction of the 22 percent VAT. The sudden surge in Warsaw residential prices can be attributed to this 'rush,'" she said.
But despite the rise in prices, which have now leveled off at approximately $1,800 per sqm, the luxury end of the Warsaw residential real estate market looks more promising than ever. Recently one of the biggest players proved its confidence in local real estate and decided to expand an already existing project.
Last month the cornerstone was laid to mark the beginning of the construction of the second stage of Osiedle Konstancja in the prestigious Warsaw suburb of Konstancin-Jeziorna. The $20 million investment is being completed by GTC Konstancja, a subsidiary of the Warsaw Stock Exchange listed company, Globe Trade Centre (GTC).
The first stage of the residential development, spanning over a seven-hectare plot included 105 detached, semi-detached and terraced houses that ranged in size from 144 to 280 sqm. All houses have access to their own terraces and gardens. The estate is adjacent to a 1.5-hectare plot that boasts a basketball court, a playground and a park. In June 2005, when the second stage will be completed, the park will become Konstancja's central area. Meanwhile, the first stage, according to GTC information, is now 97 percent sold.
All homes built in the second stage of the development will have two floors, and use high-quality finishing materials such as mahogany window frames. In order to differentiate the new stage from the existing redbrick homes, the developer has decided to pursue a more Mediterranean color scheme. In order to adjust each project to client's needs, the developer is prepared to work individually on each home in terms of interior planning and design.
The development already has a complete infrastructure including its own water source, access roads and round-the-clock security. It is located near the center of Konstancin and its Stara Papiernia shopping area.
Although property prices in Osiedle Konstancja will range between $178,000-550,000, GTC representatives are confident that the project will not lack customers.
"The popularity of Konstancja is confirmed by the fact that of the 73 houses on sale in the new stage, already 20 percent have been sold," said Mariusz Kozłowski, director of development at GTC.
This view is confirmed by industry experts, who believe that although the prices of residential developments will increase, the demand will not wane.
"The prices on the luxury end of the residential market will increase and gradually, over the next 10 to 15 years, will reach the EU average," said Anna Grzywaczewska.
"There is increased demand in luxury residential investments, particularly among foreign investors, mainly from the UK, Ireland and Spain, who purchase such residences in order to later rent them out," said Anna Grzywaczewska, market analyst with real estate agency Ober-Haus. "The same trend can be observed among Polish landlords," she added.
Although positive trends on the local business scene are now often attributed to the nation's recent EU accession, Grzywaczewska believes that the interest in luxury residential developments goes back longer than just six months.
"This trend did not strengthen suddenly with the moment of Poland's accession but was increasing gradually over the last year or so," she said.
Grzywaczewska agrees, however, that the increased demand at the beginning of the year, caused by purchases made to avoid the 22 percent VAT on construction materials, has pushed real estate prices higher than before.
"There was unnatural demand for residential properties in all segments of that market right before May 1st and the introduction of the 22 percent VAT. The sudden surge in Warsaw residential prices can be attributed to this 'rush,'" she said.
But despite the rise in prices, which have now leveled off at approximately $1,800 per sqm, the luxury end of the Warsaw residential real estate market looks more promising than ever. Recently one of the biggest players proved its confidence in local real estate and decided to expand an already existing project.
Last month the cornerstone was laid to mark the beginning of the construction of the second stage of Osiedle Konstancja in the prestigious Warsaw suburb of Konstancin-Jeziorna. The $20 million investment is being completed by GTC Konstancja, a subsidiary of the Warsaw Stock Exchange listed company, Globe Trade Centre (GTC).
The first stage of the residential development, spanning over a seven-hectare plot included 105 detached, semi-detached and terraced houses that ranged in size from 144 to 280 sqm. All houses have access to their own terraces and gardens. The estate is adjacent to a 1.5-hectare plot that boasts a basketball court, a playground and a park. In June 2005, when the second stage will be completed, the park will become Konstancja's central area. Meanwhile, the first stage, according to GTC information, is now 97 percent sold.
All homes built in the second stage of the development will have two floors, and use high-quality finishing materials such as mahogany window frames. In order to differentiate the new stage from the existing redbrick homes, the developer has decided to pursue a more Mediterranean color scheme. In order to adjust each project to client's needs, the developer is prepared to work individually on each home in terms of interior planning and design.
The development already has a complete infrastructure including its own water source, access roads and round-the-clock security. It is located near the center of Konstancin and its Stara Papiernia shopping area.
Although property prices in Osiedle Konstancja will range between $178,000-550,000, GTC representatives are confident that the project will not lack customers.
"The popularity of Konstancja is confirmed by the fact that of the 73 houses on sale in the new stage, already 20 percent have been sold," said Mariusz Kozłowski, director of development at GTC.
This view is confirmed by industry experts, who believe that although the prices of residential developments will increase, the demand will not wane.
"The prices on the luxury end of the residential market will increase and gradually, over the next 10 to 15 years, will reach the EU average," said Anna Grzywaczewska.
