Poles more willing to invest in land

The coronavirus pandemic has significantly increased the interest in land investments, which may be due to the fact that Poles – especially during the crisis – are primarily looking for a safe investment of capital, and land purchase is perceived as such. According to data from the Central Statistical Office of Poland, over the last 15 years the average price of 1ha of agricultural land in Warmia and Mazury has increased by 888 percent, and the price increase has not been slowed down even by the crisis of 2008–2009. Even the tightening of banks' lending policy should not stop the interest in land investments, which has been visible in recent months, as most investors finance such a purchase with cash.

“There is an increased demand for land investments on the market. This is due to the specificity of the situation we find ourselves in and the natural need for possession. Land has always been a value in itself. Now he has been appreciated more by the society,” Jakub Węglarski, marketing director of Rodzinne Inwestycje, said.

Buying real estate is one of the most willingly chosen investment methods by Poles. It is associated with safe and profitable capital investment. The Kantar study for UOKiK, conducted at the end of 2018, shows that 47 percent of Poles with the amount of PLN 500,000 of savings would decide to invest it in real estate (in the case of PLN 100,000 of savings, this percentage was 31 percent). Among the respondents who have investments other than financial products and services, 62 percent would decide to buy real estate.

In turn, in last year's Biostat study commissioned by Green House Development, 3/4 of the respondents declared that they would allocate free funds to invest in real estate. Almost 100 percent showed that investing in real estate for rent is a good way to get additional, steady income. As the expert of  Rodzinne Inwestycje pointed out, the continued interest in this form of investing capital is mainly influenced by the stability and certainty of investments.

(Newseria)