The choice of apartments located in the best, prestigious locations in the center of Warsaw is not large, due to the limited supply and a small land bank. Therefore, buildings with premium housing will grow upwards, as will demand and prices.
Last year, there were many opinions predicting a stagnation in residential real estate and price drops, which was supposed to be related to the coronavirus pandemic and the collapse of the economy. However, as it turned out, flats are selling very well and their prices are still going up. This largely applies to premium real estate.
Data on the number of transactions based on systematic market monitoring carried out by JLL confirm the growing interest in real estate in the apartment segment. The average quarterly sale of apartments in Warsaw in the first half of 2021 was approximately 20 percent higher than the average quarterly sale in the period from 2018 to 2020, despite the constantly decreasing offer. In 2018-2020, on average, in the quarter, approx. 20 percent of the current offer in the apartment segment was sold, while in the first half of 2021 it was already approx. 35-40 percent.
In April, developer Asbud started the construction of Towarowa Towers, i.e. two 95-meter high residential towers located at ul. Prosta near Rondo Daszyńskiego in Warsaw. It has planned almost 600 apartments of various sizes ranging 25-140 sqm and a four-story underground garage. The high demand for this type of premium flats is evidenced, for example, by the fact that, shortly after the start of construction, about 40 percent of flats in the first tower were already sold.
The choice of apartments located in the best, prestigious locations in the center of large cities is not large, due to the limited supply and a small land bank. Therefore, plots in the best locations will probably be developed more vertically than horizontally.