The battle for land is gaining momentum

Data from the Colliers annual report summarizing 2021 allow us to forecast that the high demand for apartments, purchased both for commercial and investment purposes, and the insufficient supply will drive the increase in the prices of apartments and land throughout Poland. These factors will also contribute to an increase in competition in the race for attractive plots of land, for which the office market will have to compete more and more often with housing and service investors. According to Colliers experts, the black horse of this race will be the PRS sector.

Growing competition from residential investors implementing projects in this formula will have an impact on the price level of office land.

"The number of PRS projects in which we are involved shows that the interest of investors in this market sector is already huge, and will be even greater. In the second quarter of 2022, the project in Warsaw with a transaction value of PLN 150 million will be finalized. At the beginning of the year, we closed the land sale transaction for the PRS investment involving the construction of 135 apartments for rent in Sopot," Emil Domeracki, Director of the Land Department at Colliers, said.

(WBJ)