The shopping spree in the investment land market continues

The battle for investment land is still going on, and the lack of attractive assets feels more and more severe. This applies to all large cities in Poland. For a long time, no matter the place, the investment land has not been easily available. In contrast, there are plenty of people willing to buy land, as well as free funds to finance these purchases. The money surplus is enormous. Investors are trying to invest their capital inland as soon as possible, for fears of inflation. Although the peak shopping spree, often associated with really risky decisions, has already passed, the situation continues to bear resemblance to the one we remember from the years 2007-2008, when everything was selling like hotcakes, at rapidly rising prices.

“The appearance of new investors has shortened the sale process of attractive lands, which now usually closes within three months. In turn, the difficulty is the highly overestimated value of many plots of land or the unregulated ownership status of the property. The owners of the land are also very reluctant to reserve the land through conditional or preliminary purchase agreements without deposit (earnest money),” Agata Karolina Lasota, Managing Director of LBC Invest, said.

In her opinion land is a real star of the investment market. The high activity in the investment land market is also evidenced by the transactions carried out in 2021 by LBC Invest, most of which concerned land real properties. 

“In Wrocław and Kraków, we have supported our clients with comprehensive customer services for contracting of land in the implementation of development projects in the residential segment for over 45.000 sqm of residential and usable area. Some of them are under construction, and some are in the phase of obtaining building permits. We also closed a few speculative transactions last year,” she stressed.

(WBJ)