Attractive land boom and investments in 2022. “We expect a turmoil”

Low interest rates together with the runaway inflation tempt to purchase properties, mostly for investment purposes. The demand is growing, yet the most sought for apartments do not come in large numbers. Short-term rental market has fallen into decline and the most popular among consumers planning to invest in properties are larger apartments, preferably with a terrace or balcony.

Polish investors value their time and savings hence they more often decide to purchase real estate from the primary market as it is a guarantee for arranging their apartment according to their needs and in a building with a good condition. They are aware that the latter brings about a reduction of operating costs in the long run. The pandemic pushed property buyers to the suburbs where they are looking for comfort and a garden. Still, however, it did not change the approach to centrally located properties – juts like before they are very popular.

Vacant plots are the good that is running short quickly – as Igor Lukasik, President of the Board of IL Capital, points out. What we have is a consumer who wants to live in his own way, with access to greenery and in full comfort. And we have developers who must expand in a manner which is their response to such demand. On the other hand, the number of building plots is limited. Accordingly, when these three factors overlap, we may expect quite a turmoil. – he adds.

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