2020 – a year that noone expected. How it was in the real estate?
2020 - a year that noone expected. How it was in the real estate?
Traditionally, we answer this question in our Christmas and New Year’s summary, prepared especially for you.
The speed of changes related to the coronavirus epidemic surprised us all, forcing us to react and adapt to the new situation. Taking care of our common security, we immediately introduced new procedures related to customer service, safe presentation of real estate and remote handling of current transactions.
„At the moment, we have already returned to traditional standards and methods of work – of course with full sanitary rigor. We use online meetings with customers and presentations during the first wave of the pandemic mainly for foreign customers who cannot afford to come to Poland. Other clients, despite the epidemic situation, prefer traditional presentations during which they can see the property “live”
– comment Patryk Staniszewski, Premium Property Advisor at Lions Estate.
2020 ON THE REAL ESTATE MARKET
The outbreak of the pandemic surprised us as much as everyone else. At the beginning of the year, we enthusiastically got down to work, arranged presentations, prepared the necessary documentation, and finalized transactions. At one point, however, everything stopped. 2020 will remain a pandemic year as individual real estate sectors are feeling its effects more intensely.
The pandemic has only worsened the plight of shopping centers that have been in a difficult position for a long time. All because of the changing preferences of customers who prefer online shopping more and more than traditional shopping. Galleries are not as attractive as they used to be. Today, for many people, the most important issue is security, which is offered to the greatest extent by online shopping. Currently, in the case of shopping centers, we can talk about a crisis situation – many premises are empty, because leases were unprofitable for companies unable to conduct stationary activities due to restrictions.
A NEW DIMENSION OF WORK
The pandemic has shown that remote work is possible – also in the case of companies that have not considered such an option so far, and now the situation has forced them to do so. As a result, enterprises began to realize that they did not need as much office space as before. For a long time, many companies have switched to the so-called hot desk model – employees do not have assigned places in the office permanently. Instead, flexible surfaces are created, where all desks are available to each employee, in any configuration.
More and more is being said about hybrid work, i.e. combining remote work with stationary work. These two processes – accelerated by the pandemic – could mean companies downsizing office space, presenting the office space sector to a huge new challenge.
The situation is similar in the case of student dormitories. If the epidemic continues or if the popularity of online studies continues to grow, the emerging trend of private student dormitories may be put into question.
In 2020, this market sector practically ceased to exist. With a few exceptions, it is a completely fragmented market for private landlords who could not afford the downtime due to the restrictions. Overnight, most of these properties went on sale or – those with potential – on the long-term rental market.
LUXURY REAL ESTATE RENTAL MARKET FOR CORPORATE CLIENTS AND DIPLOMATS
Due to the epidemic, the peak of the moving season for corporate clients and expats, which usually falls in spring (April – June), was delayed. Despite the prevailing pandemic, restrictions on movement and the difficult arrival of foreign managers to Poland, most of the owners did not lose their current customers, the transactions were not canceled, but only delayed.
„For us, this year in terms of lease transactions was comparable to other years. The arrivals spread over time, some transactions were carried out completely remotely thanks to online presentations. Traditionally, the owners of houses in Wilanów, Zawady or Konstancin-Jeziorna, as well as owners of large apartments – especially with their own gardens, terraces or in the vicinity of green areas, could not complain about the lack of demand. Since the beginning of the pandemic, we have carried out over one hundred luxury real estate lease transactions. It was the amount comparable to the previous years”
– comments Bartłomiej Annusewicz, CEO Lions Estate.
SALE WITHOUT CHANGES
After the first shock caused by the quarantine, school closures and the imposition of restrictions, clients became interested in the real estate market again, investing their capital in it.
Despite earlier predictions about the collapse of the market and falling prices, nothing like that happened. During the pandemic, the number of transactions involving the purchase of luxury real estate increased as Poles began investing a significant amount of funds in real estate. Property prices in the premium segment continue to rise, as does the number of transactions.
„The Warsaw premium real estate market has experienced a dry footprint through the first wave of the pandemic. We have not noticed a decrease in interest in top apartments or houses. On the contrary, the demand for apartments with large terraces or gardens has even increased, which is measurably reflected in the transactions carried out by Lions Estate. High interest in shopping translates into a stable price situation. Due to the pandemic, price growth slightly slowed down, but there can be no declines in the premium segment”
– comment Rafał Lewandowski, Partner at Lions Estate.
„Despite the turmoil related to the epidemic situation in the country, luxury real estate prices still have the greatest growth potential. The price of luxury in Poland seems to be still underestimated and the prospect of growth seems to be a logical consequence of our country’s economic development and its role in a changing Europe”
– comment Lions Estate expert.
AND HOW WAS 2020 FOR LIONS ESTATE?
LEADERSHIP IN EXCEPTIONAL CIRCUMSTANCES
It was an absolutely special year for us. As a team and a company, we went through a hard test set by the pandemic – we quickly adapted to working remotely, integrating and maintaining the team’s motivation during these difficult moments at the beginning of the quarantine.
This year, we greatly accelerated the company’s development, we implemented many procedures to further improve its functioning. We created a new organizational structure by selecting new teams and promoting new leaders – guides.
Expansion of our #LionsTeam – we doubled the team of advisers, trained and introduced to work in an innovative, original way, thanks to which our new employees could start their adventure with real estate from such spectacular transactions as the sale of apartments in the Złota 44 skyscraper.
The epidemic situation has not changed one thing – helping others is still an extremely important pillar of our activity. As every year, we actively participated in the “Szlachetna Paczka” campaign. Thanks to the commitment of the entire team, we managed to fulfill all the Christmas dreams of Mrs. Justyna and her family (“Noble Package 2020”). As part of the internal competition for the team, the winning team will donate to the “ETEZJA” Support Center for Women with Minor Children and Pregnant Women. We also managed to fulfill the dreams of children from the “Mam Marzenie” (“I have a dream”) Foundation ( Ola’s and Karol’s. As every year – Lions from #LionsTeam showed a huge heart, causing a smile on many faces
PREMIUM REAL ESTATE MARKET LEADER
During the 11th Polish Businesswomen Awards Gala, organized by the editorial staff of the Businesswoman & life Magazine, we received the award for the best premium real estate agency – we were awarded as the Premium Property Rental and Sales Leader. This extraordinary distinction makes us happy and fills us with pride, but at the same time motivates us to further work.
You can read more about gala in the article “Lions Estate – The Premium Property Rental and Sales Leader of 2020″
2020 IS ANOTHER, RECORD YEAR
This year, we have sold a record number of luxury properties in both the secondary and primary markets. Lions Estate was selling the best adresses in Warsaw again. Our successes include sales transactions at Złota 44 Street, in the Cosmopolitan apartment building and at Emilia Plater Street, penthouses at Noakowskiego Street, św. Barbara Street, and in the new investment of the developer Volumetric at Górnośląska 6 Street. We also dealt with the sale and purchase of luxury apartments in the unique Mokotowska street and houses in the most prestigious locations of the capital.
We would like to send you our best wishes on the occasion of the upcoming New Year 2021. May the upcoming year be particularly successful for you, both in the private and professional sphere!