More bling for your buck

Demand for luxury homes is rising as Poland's middle-class gets richer, according to a recent report by the Metrohouse real-estate company.

It says that three to five percent of Poland's population is considered wealthy, and within the next few years there could be annual demand for up to 1,000 apartments built according to the highest standards.

Price is the most obvious factor for judging a luxury apartment. According to Metrohouse's report, the average price per sqm for a luxury apartment in Warsaw is zł.15,000, but at the top end of the market there can be huge differences in price.

For example, a square meter in Dom Development's Patria apartment project is zł.15,000, but in its Opera residence the price is zł.25,000 per sqm. Back in the middle of the market, the price for a standard flat in the same location is zł.9,000 and zł.10,000 per sqm respectively.

In the 1990s there was a distinction made between flats and apartments, with all residences located in secured buildings with more than 100 sqm considered as apartments. Nowadays, the situation has changed and more criteria need to be met for a flat to be seen as an apartment.

"Location is the most important factor, as the building needs to be placed in a prime location," says Mariusz Kania from Metrohouse. "Design is of course another important factor - stones on the facade, good architecture and solid construction. A swimming pool, gym and sauna is a must, but we will see these type of facilities disappearing as not many people use them."

Dom Development, Skanska and Orco are among the investors that offer luxury apartments to their customers. "The flats in such an apartment building can be very different from each other," says Katarzyna Cypranowska of Metrohouse. She says that although residents want luxury, the also want choice and developers have to offer a variety of apartments, particularly when it comes to size.

According to Kania, there are certain areas close to Warsaw's Łazienki Park, Saski Garden, Upper Mokotów and Żoliborz that will be luxury hotspots in the future. He also expects some development companies to specialize in building high-end exclusive residential projects.

The market might be lucrative, but for the moment it remains tight - according to a recent report published by CB Richard Ellis and Murator Expo, only two percent of buyers look for apartments that cost more than zł.8,000 per sqm.