Sleeping giant
For many years developers in Poznań concentrated on basic, low-cost apartment projects or houses located on the city's outskirts. Now, more higher-quality apartment complexes are being launched. Poznań's market began to move at the end of last year and only now has the price exceeded zł.4,000 per sqm. Compared to Wrocław and Kraków, in Poznań plots are still much cheaper.
Kazimierz Kirejczyk, president of REAS Consulting, says that in terms of new developments, the the Poznań market one of the five most active markets in Poland. "In other cities, first certain investment patterns are created and then they are adapted in Poznań," adds Kirejczyk.
Experts say the market will grow because it has a great potential for economic growth. "Even now if we look at Poznań from a developer's point of view, the market is still weak. If we look from an investor's point of view, the market is promising, because apartments are still cheap - so they have the highest potential for growth," says Łukasz Madej, managing director of Rednet Property Consulting.
Kirejczyk says prices didn't increase much between 2001 and 2003 when they remained below zł.3,000 per square meter. Prices now still remain low, and are growing relatively slowly. Madej finds this strange since Poznań ranks second among cities in Poland in terms of both a low unemployment rate and average income.
The market is still dominated by two- and three-room apartments. Experts say Poznań is in fashion, but too few developments are in progress. Also, in the past the offer was narrow, developers' experience with the city was limited and their level of activity was low. The situation is only now beginning to change.
"Almost all residential developments constructed up until last year could be considered as and cheap. Now, new foreign developers are becoming interested in the Poznań market and there is a great potential," says Madej.
British firm Howard Property Polska is a new developer planning to enter the Polish market through a residential development in Poznań. Madej says that the most interesting residential projects currently in progress are Wilga, Pelikan and City Park, the most expensive apartment development.
