April 1, 2023


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Prices are still high pjd?  Large foreign funds buy real estate in Poland

Prices are still high pjd? Large foreign funds buy real estate in Poland

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Real estate bubble? ‘The danger is great’

In early June and July, the Danish fund bought Nordic Real Estate Partners (NREP) in Warsaw 1000 apartments – depending on the service Domiporta.pl. Investor paid 100 million euro, i.e. approximately 450 million Polish zlotys. This is not the first deal of its kind.

Housing prices rise. In Gdynia and Sosnowiec, an increase of more than 20 percent.

Foreign funds plan to buy large real estate in Poland

Previously, there were similar transactions, albeit on a slightly smaller scale. At the beginning of 2021, another foreign fund was purchased in Wroclaw 300 Residential apartments. Previously, Marvilop, one of the largest developers, announced 650 sales Real estate foreign fund. Meanwhile, Nordic Real Estate Partners plans to acquire 10,000 apartments in Poland by 2025.

said in the message Thomas Konarsky, President of YIT Development, and an investment contractor for a foreign fund.

According to the analytical firm ThinkCo, this is just the beginning of wholesale purchases in Poland. As a result, there are questions about the future of the market Real estateAnd above all, about the impact of such operations on the prices Residential apartments.

Block (illustration)There is an average of 29 square meters per pole. place of residence

Huge investment may raise home prices

Critics of mass acquisitions of Polish apartments by foreign funds point out that such operations could significantly raise the already soaring real estate prices in Poland, he reported. Entry. Large companies, due to huge investments, may offer lower rents, but on the other hand, real estate purchases of this size are more likely to increase prices in the primary market.

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In turn, supporters of such transactions argue that they will allow the rental market to develop, and the Poles will be able to live in better conditions, the site says. Investors will also benefit from this thanks to the subsequent sale of the property at a profit. Interia concludes that at the moment it is impossible to clearly explain how the wholesale investments of foreign funds will affect the Polish real estate market, but given the situation in Western countries, we can expect a strong development of institutional leasing, at a more cost. Difficulty accessing the primary market.