Merchandizing the Venice of Poland
Imagine a town on 12 islands crossed with 112 bridges, offering impressive architecture and patterned with squares of green space. Labeled the Venice of Poland, and the capital of Dolnośląskie voivodship, Wrocław is the greenest town in Poland, with 25 meters of green per citizen. The town, with a number of grand tourist and cultural attractions, is also emerging as a young, fresh prospective market, appealing to foreign investors.
With more than 130,000 students, Wrocław is the third-largest scientific-academic center in Poland. Investors have started to appreciate not only the high quality staff but also the developed technical and transport infrastructure. A recent HP investment of $50 (zł.162) million in a new business process outsourcing center in Wrocław is an example of how the town's central location and developed IT technology infrastructure is winning over other parts of CEE.
New investments create new working places, and the bigger the labor force, the greater the demand for housing. Thus, the residential real-estate market in the area is awakening. With the commercial real-estate sector already catching up with the gigantic market in Warsaw, Wrocław has now started to take care of its residents' future homes. Although the number of complete and handed-over flats was 2,100 in the fourth quarter of 2004, which is not very impressive, especially if compared to the capital's record of 10,300, specialists are optimistic about it, pointing out that the town's advantages lie in its specificity.
At CEPIF 2005, the president of tabelaofert.pl, Robert Chojnacki, presented specific data on the Wrocław real-estate market, and said: "Wrocław is an emerging, young market." Young, because as many as 43 percent of potential flat buyers are people aged from 25 to 30. At the same time, there is a 14 percent demand for new flats among students, which is a noticeable number especially when compared to seven percent in Warsaw, where the bulk of buyers are managers and businessmen.
Considering the age and status of potential flat buyers in Wrocław it can be easily predicted that most of them will not be rather generous when looking for a home. Thus, 70 percent of those who intend to buy a flat will not spend more than zł.2,500 per sqm.
Also, the reasons that customers have in their minds when buying a flat are different in Wrocław. In Warsaw, buying a flat is more an investment to bring profit. In Wrocław, in turn, most people who are interested in buying an apartment are either still living with their parents, or renting flats, and dream of their first home of their own. Some 20 percent in Warsaw, and only 14 percent in Wrocław, treat their flat purchase as a deposit.
Another interesting observation is that there are far more people willing to live on the ground floor in Warsaw than in Wrocław. The reason is that the standard in Warsaw is now building houses on secure areas. What is common to the Warsaw and Wrocław markets is that there is a gap in the market when it comes to luxury apartments and bigger flats.
The next edition of Lokale Immobilia will have full coverage of CEPIF 2005
With more than 130,000 students, Wrocław is the third-largest scientific-academic center in Poland. Investors have started to appreciate not only the high quality staff but also the developed technical and transport infrastructure. A recent HP investment of $50 (zł.162) million in a new business process outsourcing center in Wrocław is an example of how the town's central location and developed IT technology infrastructure is winning over other parts of CEE.
New investments create new working places, and the bigger the labor force, the greater the demand for housing. Thus, the residential real-estate market in the area is awakening. With the commercial real-estate sector already catching up with the gigantic market in Warsaw, Wrocław has now started to take care of its residents' future homes. Although the number of complete and handed-over flats was 2,100 in the fourth quarter of 2004, which is not very impressive, especially if compared to the capital's record of 10,300, specialists are optimistic about it, pointing out that the town's advantages lie in its specificity.
At CEPIF 2005, the president of tabelaofert.pl, Robert Chojnacki, presented specific data on the Wrocław real-estate market, and said: "Wrocław is an emerging, young market." Young, because as many as 43 percent of potential flat buyers are people aged from 25 to 30. At the same time, there is a 14 percent demand for new flats among students, which is a noticeable number especially when compared to seven percent in Warsaw, where the bulk of buyers are managers and businessmen.
Considering the age and status of potential flat buyers in Wrocław it can be easily predicted that most of them will not be rather generous when looking for a home. Thus, 70 percent of those who intend to buy a flat will not spend more than zł.2,500 per sqm.
Also, the reasons that customers have in their minds when buying a flat are different in Wrocław. In Warsaw, buying a flat is more an investment to bring profit. In Wrocław, in turn, most people who are interested in buying an apartment are either still living with their parents, or renting flats, and dream of their first home of their own. Some 20 percent in Warsaw, and only 14 percent in Wrocław, treat their flat purchase as a deposit.
Another interesting observation is that there are far more people willing to live on the ground floor in Warsaw than in Wrocław. The reason is that the standard in Warsaw is now building houses on secure areas. What is common to the Warsaw and Wrocław markets is that there is a gap in the market when it comes to luxury apartments and bigger flats.
The next edition of Lokale Immobilia will have full coverage of CEPIF 2005
