So, what was 2019 like for real estate?
We answer this question in our Christmas and New Year’s summary prepared especially for you.
In 2019, real estate was on everyone’s lips; those who saw an imminent crash and those who decided to take advantage of the boom and join the game. There were record transactions, record sales, we have record prices. New types of investments have appeared on the market, arousing the imagination and appetite of investors. One thing we can say with complete certainty for all those who pays estate tax: 2019 was the year of real estate.
HOT TO RED OFFICE MARKET
Spectacular undertakings, spectacular transactions, the highest demand for offices in 15 years, the largest amount of new space under construction. Before our eyes, a new face of Warsaw is being created: a cosmopolitan, dynamic and modern city.
The greatest dynamics of development is in Bliska Wola around the Daszyńskiego roundabout. Warsaw Spire has already been built here, Skyliner, Warsaw Hub, Warsaw UNIT, Generation Park are being built, Towarowa 22 is planned. In the vicinity, HB Reavis is building Varso – the tallest building in the European Union.
Office market transactions? Records. More records. The most spectacular of them is the sale in 2019 of Warsaw Spire – Ghelamco’s flagship investment – for a record amount of EUR 386 million!
CO-WORKING, CO-LIVING, WHAT’S NEXT?
After coworking, i.e. sharing office space by many independent entities, the time has come for co-living. The idea of co-living is to obtain higher-quality living space by sharing it and building a community. In the United States, co-living is growing at a dizzying pace. The situation is similar in Germany. In 2019, this type of investment has become a hot topic also in Poland. There are investors who create the first projects, such as Smartti Mokotów in Warsaw, which is to offer 1000 apartments. Other investors, such as the German company Medici Living Group, are planning a number of such investments in the largest Polish cities over the next five years.
CAPITAL FLOWS TO STUDENTS
Investing in modern student dormitories was an equally hot topic in 2019. Currently, there are approx. 100 private dormitories in Poland, offering approx. 6.5 thousand. places for students. Other facilities are under construction, incl. LivinnX by Golub GetHouse or Student Depot by Griffin Real Estate. According to a report by Colliers International, over 32% of the surveyed investors are active in the private student residence sector, and Poland was recognized as the market with the greatest potential and there are many lawyers for business start ups who are ready to lend their helping hand to the new and upcoming entrepreneurs of the future.
NEW REALITY IN THE HOUSING MARKET
The housing market aroused the greatest emotions in 2019. Rising prices meant that the term “speculative bubble” was often used in the context of real estate. Housing prices have been rising continuously for several years and are now at their highest historical level. As a result, the popular opinion includes comments about the bubble, the expected crash and the anticipation of a market crash. At the same time, in 2019, Poles probably took a record number of mortgage loans: high prices do not scare people away.
What’s next? Housing prices on the popular market have a natural barrier to growth related to purchasing power, which they will not be able to exceed. For this market, gradual but more moderate growth is most likely. However, in the opinion of Lions Estate experts, the prices of luxury real estate have the greatest growth potential. The price of luxury in Poland still seems to be underestimated and the prospect of growth seems to be a logical consequence of the economic development of our country and its role in a changing Europe.
EVERYONE WANTS TO EARN ON RENTING
The hottest topic in real estate in 2019 has become institutionalized investments in apartments for rent. The first significant signal was the purchase of 72 apartments in 2017 by the German investment fund Catella Wohnen Europa in the Złota 44 investment. Today, the scale of projects is even greater. We are no longer talking only about purchasing apartment packages, but about purchasing entire buildings or even entire investments.
The most spectacular and record-breaking transaction is the sale of a 167-meter residential tower by Golub GetHouse. In a perfectly located investment at Grzybowska Street, in the vicinity of the Hilton hotel and Browary Warszawskie, a high-quality apartment building will be built with 900 apartments, fully intended for rent. There are many similar investments. Active players in this market are Griffin Real Estate, Echo Investment, Zeitgeist Asset Management and many other entities.
Are such investments likely to become a new investment hit? The future will show whether, along with the change in the lifestyle of Poles, greater mobility and the adoption of the trend of “using without buying”, the assumption that we will be more willing to rent a flat without buying it will turn out to be true. One thing is for sure: investors today believe it and invest huge amounts of money in it. This market is emerging and 2019 was a breakthrough in this respect.
AND WHAT WAS 2019 FOR LIONS ESTATE?
For us, 2019 was an intense time of development, breaking new records, the number and value of transactions, and spectacular successes! As in the previous year, we advised on a possibly record-breaking transaction on the housing market nationwide! Last year, it was a transaction for the purchase of an apartment in the Park Lane investment (Tacit Group) at Łazienki Królewskie for PLN 14.5 million. This year, it is the sale of an almost 400-meter apartment in the Flisak investment by Ghelamco in Warsaw’s Powiśle.
But work is not only about money. For us, 2019 was, above all, a time of many great moments, intense work and study together, joint effort to strive for excellence and constantly looking for better ways to satisfy our customers. And most importantly – in line with Lions’ values - it was also a time of absolutely great fun on various occasions, on occasion and without occasion.
WE WISH YOU ALL THE BEST IN 2020 !!!
We would like to thank you very much for 2019! To all those who trusted us, bought, sold or rented their property with us! To all those who are the ambassadors of our brand and recommend us to the world. We wish you a wonderful family Christmas time, surprising gifts, and in the New Year…. well, just happy birthday only twice as much!