The latest issue of Dziennik Łódzki featured a statement by Horizone Studio partner Bartłomiej Kisielewski, who commented on the increasingly popular trend of ecology in construction and all kinds of green solutions. Bartlomiej drew attention to a number of solutions that can be used in multifamily buildings, which allow in the long run to save on payments, such as for electricity, heating or water heating.
An excerpt from a statement by Bartlomiej Kisielewski, partner at Horizone Studio:
“For example, these can be photovoltaic panels or so-called solar panels connected to a heat storage tank common to the entire building. This does not necessarily have to be a solution that provides 100 percent of the annual energy needs – instead, it can complement traditional solutions. Another example is recuperation or the use of green roofs.”
We invite you to read more!
Developers already know that ecology can’t be just a marketing gimmick
Ecology one of the main trends in the construction industry
The past year in the real estate industry will be remembered mainly for the introduction of the government’s “2% Safe Credit” program. However, this was not the only market innovation.
Experts also point to the growth of the PRS (private rented sec- tor, or institutional rental housing) sector and the development of green trends that will stay with us for a long time.
Price spikes
The impact of the “2% Safe Loan” on the shape of the current real estate market cannot be questioned. This direct demand stimulator very quickly motivated Poles to buy apartments, leading to a situation of huge excess of demand over supply. The result of these changes was a melting supply and, at the same time, a very dyna- mic rise in prices.
A report published by Rynekpierwotny.pl shows that in the fourth quarter of 2023, the average price of apartments on offer from de- velopers increased by more than 4 percent, while throughout 2023, the price increase for new apartments in most major cities was in double digits.The largest increase, by 27 percent, was in the Tri-City. In Cracow it was 24 percent, and in Warsaw it was 23 percent. Significantly, at the end of December 2023, the average price per square meter of apartments offered by Warsaw real estate developers exceeded PLN 16.7 thousand, which means that for a 50-square-meter new apartment in the capital one had to pay on average almost PLN 837 thousand – that’s about 155 thousand more than a year ago. In Kraków, on the other hand, the purchase of a 50-square-meter apartment means spending an average of about 151 thousand zlotys more than at the end of last year, while in the Tri-City – about 160 thousand zlotys. Rynekpierwotny.pl also points out that the acceleration of price growth began in July 2023. This was the moment when a secured loan offered by the government appeared in the banks’ offerings.
– I observe two real estate markets in detail – Łódź and Poznań – and in both of these cities real estate prices have evidently increased. For example, two years ago we were buying apartments in Lodz on Senatorska Street for about PLN 6,500 per sqm, while in 2023 it bordered on a miracle to get a price of PLN 7,400 per sqm. A similar situation occurred in Poznań. In 2023, there was no chance to buy an apartment for less than 8 thousand per sq. m., so the increase in the value of real estate is evident and varies in places between 5 and 10 percent. Of course, this was influenced by the “2% Safe Credit”. All the cheaper properties have been sold out, especially those that met the program’s criteria, and the market is left with more expensive units, which are sold out all the time. At this point there is no indication that we will see price reductions in the near future, on the contrary, it will get even more expensive due to inflation, the increase in the price of building and finishing materials and the cost of labor. The only thing that can happen is that interest rates will remain high and mortgages will be difficult for the average citizen to access. However, work is underway on a new customer support program, Housing for Starters. So the market can expect another stimulator,” says Wojciech Orzechowski, developer, investor, flipper and publisher of the Non-Movement Zone.
Institutional housing rental booming
While Polish developers may have enjoyed an increase in demand from retail customers in the past year, at the same time we also witnessed a period of rapid growth in the PRS sector. According to Spectis’ report, “Residential Developers in Poland 2024-2029,” at the end of September 2023, the total stock of apartments in this segment was around 15,000, with more than 11,000 rental units under construction. It is expected that 2024 will be another record year in terms of the number of completed apartments in the institutional rental segment.
According to Savills andCRIDO calculations, 17 projects by PRS investors hit the rental market during the three quarters of 2023, making their overall stock increase year-on-year by 83 percent. – to 14,900 apartments. The largest number of units was available in Warsaw -6.15 thousand, in Wroclaw – 2.6 thousand, in Krakow – 2.2 thousand, in Poznan – 1.4 thousand, and in Lodz – 1.2 thousand.
-Poland’s institutional rental market is entering its heyday. Admittedly, compared to Western Europe, our domestic PRS is small in size, but it is growing at a very fast pace and an interesting future is clarifying for it.
Interest in eco-building has been growing rapidly for several years. This is because there are a number of solutions that can be applied to multifamily buildings.
After all, it is still a relatively new product – it has been formulated for about 6 years, and the most active in terms of purchases, acquisitions or creation of new offerings were actually the last years, starting in 2020. The prospects for development, therefore, remain high, and this is supported mainly by the conditions and structure of the housing sector in Poland. These include the dynamic development of cities, the process of singularization of households, as well as the growing mobility of Poles associated with various forms of employment. A very important aspect driving the PRS in Poland is also the continuing significant housing deficit and the difficulties associated with buying one’s own M,” says Magdalena Rybicka, director of sales and marketing at LifeSpot.
Building in the eco trend
One of last year’s major trends in the real estate market was also eco-building. This is evidenced by the emergence of an increasing number of ecological estates, houses and office buildings, which are built in accordance with the principles of sustainable development. Presence of development sites. The presence of green areas today is one of the main determinants of the attractiveness of settlements in the eyes of residents. In an era of rapidly growing public awareness, as well as under pressure from EU requirements, the construction industry is experiencing a transformation at an unseen
The presence of green areas today is one of the main determinants of the attractiveness of settlements in the eyes of residents so far in scale and pace. According to the report , “Sustainable Certified Buildings RAPORT 2023” by the Polish Green Building Association, interest in certified residential developments has been growing since 2020. In the past year alone, 53 investments were built, representing a 45 percent year-on-year increase. PRS investors, moreover, are particularly active in this sector.
– Interest in eco-building has been growing rapidly for several years. This is because there are a number of solutions feasible for multi-family buildings, which can bring significant economic benefit to users over the long term. The choice of such solutions is extremely wide. For example, they can be photovoltaic panels or so-called so- lars connected to a heat storage tank common to the entire building. It does not necessarily have to be a solution that provides 100 percent of the annual energy demand can instead complement traditional solutions. Another example is recuperation or the use of green roofs.
However, it should be noted that clients – especially young ones – are sensitive to so-called greenwashing and it is not worth treating environmentalism as a marketing gimmick that has no real basis in reality, says Bartlomiej Kisielewski, partner at Horizone Studio. OP
