MDC² Park Gliwice achieves BREEAM Outstanding certification

MDC2 Park Gliwice has received confirmation of the highest possible rating – Outstanding – in the BREEAM (Building Research Establishment Environmental Assessment Method) certification. It is one of the most recognised methods of assessing buildings for their environmental impact. It assesses, amongst other things, energy efficiency, water management and indoor environmental quality.

The development comprises three buildings with a total area exceeding 58,000 m² on a 13.4-hectare site. The project was commissioned in Q4 2023. Companies such as: Rohlig SUUS – one of the fastest growing, market-leading logistics operators in Poland and AFL – a global market leader in information technology, have leased space in the development.

“Our common goal was to create a space that not only meets the needs of tenants, but also contributes to protecting the environment. The fact that we have achieved this is the result of the hard work of the entire team and proof that responsible investments can benefit both people and nature,” says Anna Szelc, Director, Investments, Invesco Real Estate.

MDC² Park Gliwice exemplifies a successful investment in a revitalized post-industrial urban area. It was built on a former railway site that served as a prefabricated house factory. The project involved site remediation and preparation to make it suitable for the new development.

MDC2’s ESG strategy, which underpins the company’s development, is guided by the motto Building for Good, according to which it builds warehouse parks for a sustainable future for tenants, investors, local communities, the environment, and the industry as a whole.

“Achieving the highest BREEAM rating is a huge success for us. This proves that our sustainability efforts are producing a tangible effect. Thanks to the use of state-of-the-art technologies and sustainable construction practices, MDC2 Park Gliwice remains at the forefront of this type of speculative development, setting the best example for the entire warehouse market in Poland,” – says Katarzyna Dudzik, Development Director, MDC2.
In terms of the operation of the building, the MDC2 provides comprehensive, energy-efficient solutions to ensure tenant comfort, service efficiency and reduce the environmental impact of the development. A life cycle analysis (LCA) of materials was used to assess the environmental impact of the investment and products with EPD environmental declarations were used.

Thanks to the thermal insulation of the walls, the building minimizes heat loss, resulting in lower heating and cooling costs (62% reduction in final energy consumption compared to reference buildings). The use of passive technologies has resulted in an additional reduction in primary energy demand of 40% on average. Water-saving solutions, including aerators, electro-valves, and leak detection systems, have reduced water consumption by over 66% compared to standard models. Regular monitoring of energy consumption, water consumption and CO2 emissions was carried out at each stage of construction. A minimum of 80% of the office space has access to daylight. A construction waste recycling rate of at least 97% was achieved. FSC and PEFC-certified timber was used in the construction of the building. Rexbud, the general contractor, with ISO 14001 environmental management certification, was responsible for the project.

MDC2 believes in environmentally friendly mobility, so it provides convenient bicycle shelters to encourage tenants to use bicycles as an alternative to cars. MDC² has thoughtfully designed the surroundings to promote biodiversity, positively contributing to the local ecosystem. The project includes the planting of 170 trees, 50 m² of shrubs, and 250 m² of a flower meadow with bird-friendly plants, along with dedicated habitats for insects. There are areas for relaxation and physical activity, and this promotes both a healthy lifestyle and social integration. In the interests of sustainability and in support of electric vehicle users, charging stations have been installed on the site.

With these solutions, MDC² not only raises the building’s operating standards but also significantly contributes to sustainability and environmental protection.

The JWA team is responsible for carrying out the certification process.

“We congratulate MDC² Park Gliwice for achieving the highest Outstanding rating in BREEAM certification. This unique award highlights excellence in logistics building design. MDC² Park Gliwice fulfils the key tenets of Poland’s sustainable warehouse development strategy for the evolution of the business,” – says Olga Więckowska, BREEAM NC International Assessor and Sustainability Expert, JWA.

Key Tax Changes Impacting the Czech Commercial Real Estate Sector in 2024

In an interview with TPA Czech Republic, CIJ EUROPE discussed key tax changes impacting the real estate sector.

The Czech commercial real estate sector has experienced several notable tax changes this year, reshaping investor strategies and operational processes. Real estate tax rates have risen by nearly 80%, marking the first significant increase in over a decade. This adjustment reflects inflation and other contributing factors, with further growth anticipated due to the inflation coefficient, although for 2025, the coefficient remains at 1.00, unchanged from the previous period. Starting in 2024, the corporate income tax rate increased from 19% to 21%, affecting not only real estate investors but also deferred tax calculations and reported investment results. From January 1, 2025, the exemption on income from share sales will be capped at 40 million CZK annually, with gains exceeding this threshold subject to taxation. To mitigate retroactive effects, taxpayers can revalue shares to their market value as of December 31, 2024, ensuring only post-2024 gains are taxed. In a significant shift, Czech companies can now maintain accounting records in a functional currency such as euros, US dollars, or British pounds. This provides flexibility for businesses with international operations, reducing the impact of exchange rate differences on financial results. However, VAT records remain in Czech crowns, requiring robust accounting software to manage dual-currency operations effectively.

Municipalities are increasingly leveraging local coefficients to adjust real estate taxes within their jurisdictions. These coefficients, ranging from 0.5 to 5.0, allow for differentiated tax rates across residential and commercial areas. For example, logistics parks may see higher coefficients compared to residential zones. While real estate taxes are often passed on to tenants, the implications for tenant budgets make it crucial for investors to provide advance estimates.

The transition to functional currency accounting has been a practical challenge but a beneficial shift for many businesses. Companies now align their accounting currency with their economic environment, minimizing exchange rate discrepancies. TPA reports successful transitions among its clients, with their teams providing critical support in converting balances and ensuring compliance with national regulations.

Several VAT changes are slated for 2025. Taxable land now includes areas designated for construction in municipal plans or undergoing preparatory work. The period for claiming VAT exemption on property supplies will reduce from 5 years to 2 years, and only the first sale will be taxable. Properties with over 50% of floor area designated for social housing will qualify. Optional VAT taxation is introduced for non-residential leases involving EU VAT-registered entities.

The tax changes in 2024 and upcoming reforms in 2025 mark a transformative period for the Czech commercial real estate sector. From significant increases in real estate taxes to functional currency accounting and evolving VAT regulations, businesses must adapt to maintain compliance and optimize financial performance. These changes underscore the importance of proactive planning and expert guidance to navigate the evolving landscape effectively.

Catella: European housing prices rebound as rents continue to climb

Housing markets across Europe are witnessing a notable recovery, with rental prices surging and property values stabilizing after a period of decline. The latest Catella Residential Market Overview Q3/2024, which analyzed 58 cities across 16 European countries, highlights key trends shaping the residential market. Despite economic uncertainties, declining construction activity and lower financing costs are fueling demand and pushing prices upward.

Dr. Lars Vandrei, Senior Research Manager at Catella Residential Investment Management, remarked:
“Rental markets remain robust, with strong growth in capital values contributing to yield stabilization. We anticipate increased activity in transaction markets, which could stimulate much-needed construction activity.”

Key Findings: Rental Market Trends

• Rents Increased in 53 of 58 Cities: Average monthly rent reached €19.70/m², a 4.1% rise compared to Q1 2024.
• London Tops the List: With an average rent of €37.60/m² (+€1.60), London remains the most expensive city, followed by Dublin (€35.00/m²) and Geneva (€34.70/m²).
• Lowest Rents in Liège and Graz: Both cities reported rents of just €11.00/m².
• Ireland Leads Growth: Dublin rents increased by €5.00/m², and Cork saw a €4.00/m² rise to €27.00/m². The only decline was in Montpellier, France.

Ownership Market: Stabilizing Prices

• Prices Up in 45 Cities: Condominium prices averaged €5,666/m², a 2.1% increase compared to Q1 2024.
• Geneva and Zurich Remain Priciest: Geneva leads at €15,770/m² (+€120), followed by Zurich (€14,000/m²) and London (€13,930/m²).
• Finland Offers Affordability: Lahti (€1,640/m²) and Jyväskylä (€2,380/m²) recorded the lowest prices.
• Polish Cities Surge: Warsaw (+13%), Wroclaw (+16%), and Krakow (+21%) reported the highest relative increases since Q1.

Yields: Rising but Stable

• Prime Yields Average 4.59%: This marks a slight increase from 4.48% in Q1 2024.
• Lowest Yields in Zurich and Stockholm: Both cities posted yields of 2.50%, with Geneva at 2.70%.
• Highest Yields in Krakow and Cork: Both cities reported yields of 6.25%, drawing investor interest.

German Markets: Munich Dominates

• Rent Growth Across All Cities: Munich leads with €24.10/m² (+€1.70), followed by Frankfurt (€19.20/m², +€1.00) and Stuttgart (€18.10/m², +€1.40).
• Munich Tops Purchase Prices: At €9,950/m², Munich remains Germany’s most expensive market, with Frankfurt (€7,070/m²) and Hamburg (€6,800/m²) following.
• Düsseldorf Offers Best Yields: Yields in Düsseldorf reached 5.0%, while Munich recorded the lowest at 4.2%.

Special Report: Europe’s Declining Building Permits Worsen Housing Shortages

An alarming trend in declining building permits exacerbates Europe’s housing crisis:
• Permits Down 23% Across Europe: Finland (-52%), Sweden (-48%), and Germany (-37%) were hardest hit.
• Portugal and Spain Buck the Trend: Portugal saw a stable 4% increase, while Spain reported a significant 27% rise in new permits.

This decline in new housing supply is driving rental prices higher and intensifying the housing shortage. With construction activity at historically low levels in many markets, demand continues to outpace supply.

Outlook: Stabilization and Recovery

The European residential market is entering a phase of stabilization, marked by rising rents, recovering property values, and increasing transaction activity. While challenges such as housing shortages persist, cities like Dublin, Krakow, and Zurich remain key areas to watch as they balance demand with opportunities for growth.

Kickoff for High-Tech Textile Cluster: Vombaur Joins CTPark Wuppertal

CTP has announced the addition of vombaur GmbH & Co. KG as a new tenant at CTPark Wuppertal. The move marks the beginning of a high-tech textile cluster in the region, as the renowned textile manufacturer prepares to expand its operations.

Vombaur, part of the Textation Group, is a family-owned company specializing in technical narrow fabrics for industrial applications such as filtration and composites. The company, which has been based in Wuppertal for nearly 220 years, will occupy 8,746 square meters of production, office, and social space at the revitalized business park. With 150 weaving machines and approximately 90 employees, vombaur’s facilities are designed to accommodate future growth while consolidating the Textation Group’s weaving expertise.

“This location enables us to achieve our growth goals while maintaining our local roots,” said Patrick Kielholz, COO of vombaur. “The visibility and modern infrastructure at CTPark Wuppertal will help us attract skilled workers. We are grateful to CTP for their excellent collaboration.”

CTPark Wuppertal is being developed on the historic grounds of the former Schaeffler production site, blending industrial heritage with cutting-edge sustainability. The site spans 155,000 square meters, with 100,000 square meters of usable space. Historic structures, such as a sawtooth-roofed hall from 1942 and a high-bay warehouse, are being refurbished for modern use, with some buildings under consideration for heritage protection.

The park features sustainability-driven innovations, including a planned photovoltaic system for carbon-neutral electricity, heat pump-based heating, and EV charging stations. The buildings will meet DGNB Gold certification standards, ensuring energy efficiency and eco-friendly operations.

Wuppertal’s excellent connectivity enhances the appeal of CTPark. The site is just minutes from the A46 and A535 motorways, with the A1 and A3 also nearby. Public transportation access is equally convenient, with a bus stop a short walk away. Future plans include a café with an on-site roastery, set to open in 2025, and additional dining spaces by 2026.

“CTP’s work revitalizes this historic site into a vibrant economic hub,” said Mayor Uwe Schneidewind. “Their commitment ensures that the site will not become a derelict area or speculative property but will instead set benchmarks for architectural and workforce development.”

CTP’s modernization efforts will continue through August 2025, with vombaur scheduled to move into the premises in September 2025 and begin operations in early 2026.

“With CTPark Wuppertal, we are bringing a historic site into the modern era, combining sustainable design with state-of-the-art features,” said Timo Hielscher, Managing Director M&A at CTP Germany. “Our collaboration with local authorities and the mayor’s office has been instrumental in achieving this vision. We are proud to offer vombaur a location that supports its growth while honoring its Wuppertal heritage.”

CTPark Wuppertal’s transformation underscores CTP’s commitment to preserving industrial history while driving sustainable innovation, setting a new standard for business parks in Germany.

Panattoni breaks ground on Panattoni Park Poznań XIV with Gasa Group and Markat Plus

Panattoni has commenced construction on Panattoni Park Poznań XIV, a state-of-the-art logistics hub in the Wielkopolska region. The park’s first tenants, Gasa Group and Markat Plus, are set to occupy the space upon its completion in February 2025.

The new park will consist of two cutting-edge industrial and logistics buildings, with a total planned area of 63,000 square meters. Construction has started on the first building, encompassing 14,000 square meters, which will host the park’s inaugural tenants.

Gasa Group, an international trading company specializing in B2B plant distribution, will lease 6,300 square meters of warehouse space and 1,100 square meters of office space. The company plans to streamline its logistics and office operations at this site, beginning operations in February 2025.

“We are thrilled that Gasa Group has chosen our newest development in Wielkopolska to consolidate their operations,” said Katarzyna Kujawiak, Development Director at Panattoni.

Markat Plus, a supplier of wood-based materials, will occupy 3,000 square meters in the park, with operations scheduled to begin in July 2025.

The park’s strategic location offers unparalleled connectivity. Situated 1.5 km from the A2 motorway and the S11 expressway junction, and just 12 km from Poznań Airport, it ensures seamless access to domestic and international markets. Additionally, its proximity to Poznań city center, a mere 14 km away, allows for convenient worker commutes using public transportation. The Głuchów site also benefits from minimal traffic congestion, enhancing operational efficiency.

“For both tenants, the park’s strategic location at the intersection of the A2 motorway and S11 and S5 expressways is a major advantage,” added Kujawiak.

Panattoni Park Poznań XIV will be certified under the BREEAM Excellent standard, incorporating sustainable and ecological solutions to enhance energy and water efficiency. Features include electric vehicle charging stations, optimized natural lighting, and green zones for a better work environment. The park’s design also prioritizes acoustic and thermal comfort, high air quality, and other amenities to improve the well-being of future workers.

This new development underscores Panattoni’s commitment to delivering innovative, sustainable, and strategically located logistics solutions, meeting the needs of global tenants while driving regional economic growth.

Nearshoring: Poland’s growing role in global services and production

Author: Bartłomiej Zagrodnik, Managing Partner, CEO of Walter Herz

Strategic Dispersion of Business Services

Nearshoring—the relocation of business processes and production closer to home markets—is reshaping industries worldwide. In sectors such as BPO/SSC, technology, consulting, and finance, companies are increasingly establishing smaller, strategically located branches. This distributed model enhances risk management, improves response times, and tailors services to regional needs, moving beyond the traditional reliance on large operational centers.

By setting up local satellite offices, firms reduce the demand for traditional office spaces while aligning with the flexibility of hybrid work models. These regional hubs, which also serve as coworking or project spaces, allow access to highly skilled employees in areas with optimized operational costs.

Poland: A Nearshoring Hotspot for Business Services

Poland has become a prime destination for nearshoring, offering competitive labor costs, a skilled workforce, and proximity to Western Europe and the U.S. According to the ABSL report on Poland’s business services sector, 60 new business service centers began operations between early 2023 and Q1 2024, primarily in Poznan, Wroclaw, and Cracow. These investments have created nearly 5,000 jobs, with IT and shared services leading the charge.

Notable players like Capgemini, Infosys, and Google have established regional hubs in Poland, taking advantage of its growing talent pool. Similarly, smaller cities like Cracow and Wroclaw are increasingly attracting investments from consulting and financial firms, including Deloitte and Revolut, eager to diversify their operations.

Poland’s Role as Europe’s Warehousing Hub

The pandemic, geopolitical tensions, and global trade disruptions have accelerated the relocation of production and logistics to Europe. Poland’s strategic location, robust logistics infrastructure, and competitive costs have made it a leading destination for nearshoring. The country is now Europe’s fourth-largest warehousing market, following Germany, France, and the Netherlands, with 30% of warehouse space dedicated to the booming e-commerce sector.

Manufacturing Rebounds to Poland

To mitigate risks associated with distant supply chains, international companies are increasingly choosing Poland for manufacturing investments. Sectors such as automotive, electromobility, and wind energy have seen significant growth, supported by foreign direct investment over the past three years. Poland is now Europe’s top producer of lithium-ion batteries for electric vehicles and a major hub for household appliances.

Panattoni has observed rising demand for production facilities from industries such as electronics, space technology, and renewable energy components. Additionally, Asian manufacturers, particularly from South Korea, Japan, and China, are viewing Poland as a gateway to Western Europe, driven by rising costs in Asia and EU regulatory pressures for greener supply chains.

A Future Built on Nearshoring

Poland’s strategic location, highly skilled workforce, and advanced infrastructure position it as a critical hub for nearshoring in Europe. As companies continue to prioritize operational efficiency and resilience, Poland’s role in global services and production is set to grow, further strengthening its reputation as a leader in business services and manufacturing.

Langowski Logistics joins MLP Pruszków II as new tenant near Warsaw

Langowski Logistics, a leading Polish logistics operator specializing in international container transport, has signed a lease agreement with MLP Group for over 5,600 square meters of space at the MLP Pruszków II logistics center near Warsaw. The deal was facilitated by advisory firm Newmark Polska.

The lease includes 5,400 square meters of warehouse space and an additional 250 square meters of modern social and office areas, currently under development and scheduled for completion by August 2025. This move strengthens Langowski Logistics’ capacity to handle international cargo and expand its warehouse logistics services.

The newly leased facilities are tailored to meet the specific needs of Langowski Logistics, featuring advanced systems such as motion sensors and the DALI lighting system, aligning with BREEAM-certified sustainability standards.

“The spaces we offer meet the highest standards demanded by tenants,” said Tomasz Pietrzak, Leasing Director Poland at MLP Group. “The warehouse dedicated to Langowski Logistics reflects our commitment to sustainable development and providing state-of-the-art logistics solutions.”

Langowski Logistics, a family-owned business, specializes in the international transport of containerized cargo, as well as handling oversized and non-standard shipments. The company’s leadership views this lease as a strategic step in expanding its operations.

Mateusz Zalewski, Logistics Director at Langowski Logistics, highlighted the advantages of the location:
“The warehouse at MLP Pruszków II allows us to enhance efficiency in logistics and reduce service times. Being part of one of Poland’s most advanced logistics centers aligns perfectly with our mission to deliver high-quality services in domestic and international markets.”

Newmark Polska played a key role in the search for suitable space and lease negotiations. Jakub Dudkiewicz, Senior Associate at Newmark Polska, remarked:
“Despite a challenging year for the industry, Langowski Logistics continues to grow. This additional space at MLP Pruszków II increases their logistics footprint in the region to 13,000 square meters, providing a solid foundation for future expansion.”

Located in Brwinów, five kilometers from Pruszków, MLP Pruszków II is the largest logistics complex in the region, offering a target lease area of over 424,000 square meters. The center boasts BREEAM certification and integrates photovoltaic installations as part of MLP Group’s ESG strategy.

With direct access to central Warsaw, the A2 motorway, and international railway lines, the park offers unparalleled connectivity for domestic and international distribution. Onsite amenities include a bus stop and a Nextbike self-service bike rental station, enhancing accessibility.

MLP Group follows a build & hold strategy, retaining and managing completed logistics parks. Their projects are recognized for prime locations, build-to-suit solutions, and dedicated tenant support. Langowski Logistics’ presence at MLP Pruszków II exemplifies the synergy between high-quality facilities and forward-thinking logistics operators, paving the way for continued innovation and growth in the sector.

Langowski Logistics joins MLP Pruszków II as new tenant near Warsaw

Langowski Logistics, a leading Polish logistics operator specializing in international container transport, has signed a lease agreement with MLP Group for over 5,600 square meters of space at the MLP Pruszków II logistics center near Warsaw. The deal was facilitated by advisory firm Newmark Polska.

The lease includes 5,400 square meters of warehouse space and an additional 250 square meters of modern social and office areas, currently under development and scheduled for completion by August 2025. This move strengthens Langowski Logistics’ capacity to handle international cargo and expand its warehouse logistics services.

The newly leased facilities are tailored to meet the specific needs of Langowski Logistics, featuring advanced systems such as motion sensors and the DALI lighting system, aligning with BREEAM-certified sustainability standards.

“The spaces we offer meet the highest standards demanded by tenants,” said Tomasz Pietrzak, Leasing Director Poland at MLP Group. “The warehouse dedicated to Langowski Logistics reflects our commitment to sustainable development and providing state-of-the-art logistics solutions.”

Langowski Logistics, a family-owned business, specializes in the international transport of containerized cargo, as well as handling oversized and non-standard shipments. The company’s leadership views this lease as a strategic step in expanding its operations.

Mateusz Zalewski, Logistics Director at Langowski Logistics, highlighted the advantages of the location:
“The warehouse at MLP Pruszków II allows us to enhance efficiency in logistics and reduce service times. Being part of one of Poland’s most advanced logistics centers aligns perfectly with our mission to deliver high-quality services in domestic and international markets.”

Newmark Polska played a key role in the search for suitable space and lease negotiations. Jakub Dudkiewicz, Senior Associate at Newmark Polska, remarked:
“Despite a challenging year for the industry, Langowski Logistics continues to grow. This additional space at MLP Pruszków II increases their logistics footprint in the region to 13,000 square meters, providing a solid foundation for future expansion.”

Located in Brwinów, five kilometers from Pruszków, MLP Pruszków II is the largest logistics complex in the region, offering a target lease area of over 424,000 square meters. The center boasts BREEAM certification and integrates photovoltaic installations as part of MLP Group’s ESG strategy.

With direct access to central Warsaw, the A2 motorway, and international railway lines, the park offers unparalleled connectivity for domestic and international distribution. Onsite amenities include a bus stop and a Nextbike self-service bike rental station, enhancing accessibility.

MLP Group follows a build & hold strategy, retaining and managing completed logistics parks. Their projects are recognized for prime locations, build-to-suit solutions, and dedicated tenant support. Langowski Logistics’ presence at MLP Pruszków II exemplifies the synergy between high-quality facilities and forward-thinking logistics operators, paving the way for continued innovation and growth in the sector.

Empira platform partners with Partners Group to revolutionize real estate investment

Empira AG, a vertically integrated real estate investment management, has announced a strategic partnership with Partners Group, one of the world’s foremost private markets investment managers. Beginning in early 2025, Empira will join the Partners Group portfolio as an independent, specialized real estate brand, marking a significant expansion for both firms. This collaboration aims to scale the integrated real estate platform, offering institutional and private investors globally diversified and innovative real estate opportunities.

The partnership will create a comprehensive platform managing over USD 50 billion in assets, combining Empira’s real estate expertise with Partners Group’s private markets leadership. Together, they aim to deliver sustainable income and long-term value through a robust portfolio of premium real estate investments in key markets worldwide.

A critical outcome of this collaboration is the strengthening of real estate credit management. Enhanced access to global capital and the combined expertise of both firms will enable larger and more complex credit transactions, while geographic diversification will help mitigate risks. The partnership will also introduce innovative financing solutions, driving efficiency and value creation across real estate investment cycles.

Lahcen Knapp, Chairman of the Board at Empira AG, highlighted the significance of the partnership: “This milestone marks a new chapter in Empira AG’s success story. Together with Partners Group, we are building a platform committed to delivering cutting-edge products and solutions for our global investors. Our shared focus on sustainable investments and innovation aligns perfectly with Partners Group’s strategy of creating long-term value in the real estate sector.”

Empira’s investment philosophy complements Partners Group’s emphasis on global Giga Trends, such as New Living and Decarbonization. These trends, driven by migration, hybrid work models, and the rising demand for affordable housing, present significant opportunities for innovation in the real estate sector. The partnership’s entrepreneurial approach will streamline asset acquisition, development, and management, positioning the combined platform to capitalize on long-term growth.

Karim Habra, Global Co-Head of Real Estate at Partners Group, expressed his enthusiasm for the partnership: “This acquisition enhances Partners Group’s real estate division by integrating Empira’s operational expertise into our global platform. At a transformative moment for the industry, our synergies position us as leaders in an evolving market. We are excited to welcome Lahcen Knapp and the Empira team to usher in a new era of innovation in real estate.”

The partnership will focus on creating energy-efficient real estate assets in prime locations, catering to evolving market needs. By offering tailored solutions, active risk management, and sustainable growth strategies, the platform will expand access to private real estate investments for both institutional and private investors.

This collaboration marks a pivotal moment in the global real estate landscape. Together, Empira AG and Partners Group are poised to drive transformative change, set new standards for excellence, and unlock exceptional investment opportunities for their clients.

Photo: Lahcen Knapp, Chairman of the Board at Empira AG

How are new flats selling in today’s Polish market

The revival in the credit market has sparked questions about its impact on housing sales. Are property developers seeing a rise in interest from buyers for new flats? And despite the absence of preferential credit options and government support, is customer activity increasing? These pressing topics were explored in a survey conducted by the real estate platform dompress.pl, shedding light on current trends and challenges in the housing market.

Tomasz Kaleta, managing director of sales and marketing at Develia
Currently, the number of mortgage applications has almost reached the level from before the pandemic, the war and the sharp increases in interest rates, which significantly increased the cost of credit and lowered the creditworthiness of buyers. It is worth noting that this is happening without the support of any government programme. The data show a gradual increase in demand for housing, which is reflected in the sales figures of recent months. In the seven largest markets, it amounts to around 3,500 flats per month. In comparison, 2,500 units were sold during the holiday season.

Although we still have not reached last year’s sales levels or the recent average of around 4,500 units per month, an upward trend is visible. It is noteworthy that some of the customers who held off buying while waiting for the government programme are returning to the market. An important stimulus is the interest rate cut announced for 2025. Banks with excess liquidity have further reduced their margins, so that loans with interest rates as low as 7 per cent are available on the market.

Zbigniew Juroszek, CEO of Atal
In the following autumn months we see that demand is higher than in the holidays this year. However, the uncertainty in the property market caused by unclear signals from those in power regarding support programmes for selected groups of buyers is still being felt. Nonetheless, we observe that more and more customers, impatient with the wait, are deciding to finalise transactions.

Our data also shows significant changes in the structure of demand. Difficult access to credit and very expensive money have resulted in customers requesting smaller and smaller flats. Large and expensive units are also selling. However, the middle part of the offer, which would normally be of particular interest to families, is not finding buyers. A subsidy programme or a significant improvement in financing conditions would increase traffic in this segment, for which we are very well prepared with our offer.

Monika Kudełko, Director of Strategy and Marketing Communications at Activ Investment
We are seeing a stable interest in our offer, although the current market conditions and the large supply encourage customers to make more prudent purchase decisions, and the purchase process is often prolonged. Nevertheless, October turned out to be an exceptionally good month for us, which can be partly linked to the improvement in the credit market. However, the key role was played by attractive price offers and the availability of flats in convenient locations, which effectively increased the sales dynamics.

A good example is the ŚwiatoVida investment in Warsaw, where we recorded record sales – as many as 22 flats in one month. This result shows that even in challenging market conditions, well-designed projects in attractive locations still attract customers. The introduction of periodic promotions and a well-thought-out sales strategy are important elements that allow us to respond effectively to customers’ needs and remain highly active in a competitive market.

Andrzej Gutowski, Sales Director of Ronson Development
We have noticed a greater interest of customers in purchasing a flat in recent weeks. But it is worth noting that this is a temporary increase in activity. It is due to several factors. First of all, developers are conducting intensive promotional activities to encourage customers to make their purchase decisions. In addition, the approaching end of the year makes developer companies strive to fulfil their sales plans. As a result, customers, seeing attractive offers, try to take advantage of the opportunity, which further fuels interest. We anticipate that this boost will expire in mid-December.

Adrian Sączek, director of the Developer Sales Department at the Mint of Poland
Interest in purchasing flats is at a stable level, despite high interest rates. A significant share of buyers are cash customers. A flat is still treated as a safe asset to secure savings, with the prospect of an increase in value in the future, especially in large urban centres.

As for customers purchasing a flat on credit, they are usually those buying their first property for their own needs. With high rents, despite the high interest rates on mortgages, customers decide to buy counting on falling interest rates, which are said to be on the horizon by 2025.

Malgorzata Mellem, member of the Budlex Management Board
In the property market, we are seeing a decline in purchase interest, which is linked to the market’s desire for stabilisation. We continue to see some customer activity in the premium segment, but the high cost of mortgages in Poland is affecting purchase decisions. In the case of investment offers, we notice caution,. Customers are looking both for flats for their own needs and for attractive capital investment opportunities, but purchase decisions are being made with more caution.

In response to these trends, we have introduced an investment programme dedicated to our regular customers, which allows for flexible financing, special purchase conditions and priority in property selection. The programme has been very popular, especially among customers deciding to buy several flats.

In recent weeks we have noticed an increase in the number of enquiries and visits to our sales offices, especially in cities such as Gdańsk and Warsaw. A good example of this is the Kapitanat investment in Gdańsk, where the launch of the next stage of exclusive flats on the Motława river has met with a great response already at the pre-sales stage. We hope that these are swallows heralding a market upturn in the coming months.
At the same time, our planned new investments in Toruń, Bydgoszcz or Warsaw will be enriched with promotional programmes that will certainly increase customer interest. These activities, adapted to the current economic conditions, are aimed at attracting both individual buyers and investors.

Dawid Wrona, Chief Operating Officer at Archicom
Taking into account the largest Polish cities, in the last 3 months we have observed a clear increase in flat sales. Undoubtedly, part of these transactions is financed with a mortgage. Credit policy is correlated with the dynamics of sales in the real estate market, which is easy to see with the changes in interest rates.
We expected a rebound in sales at the end of this year, especially among credit customers. In my opinion, this is due to a kind of fatigue in anticipation of the launch of the new government programme, as well as a lack of information about the start date or specific assumptions. With the current level of inflation, the stable and slow, but nevertheless increasing prices of flats, as well as the relatively high supply giving the possibility to choose a flat according to one’s own preferences, it is becoming increasingly difficult to justify holding back purchase decisions. At the same time, supply is being rebuilt at a reasonable pace, which means that we should not forecast a significant drop in property prices in the near future, but rather their maintenance at a similar level.

Zuzanna Należyta, commercial director at Eco Classic
There is a slight recovery among customers, but rather in terms of decision-making. So far, we have had a similar level of interest as now, but customers have been waiting to make a decision. This is also confirmed by the BIK data, which shows that 21 per cent more home loan applications were made in October than the month before.

Joanna Chojecka, sales and marketing director for Warsaw and Wrocław at Robyg Group
In the last quarter we saw that customers postponed their purchase decisions in anticipation of new investments and the expansion of the offer available on the market. Undoubtedly, the whole quarter was also affected by the flooding in western Poland, which we clearly noted in Wrocław. This is a very difficult situation and reconstruction in flooded areas will take a longer time. Hence, the third quarter of this year was somewhat uncharacteristic. We are still seeing customer interest and are waiting for demand to return to previous levels.

However, we stand by our forecast of annual sales of 2,300 units and an increase in our rental portfolio of around 1,000 new units, so we are meeting our target schedule. The level of sales in individual quarters is more a result of seasonality and the size of the offer and does not affect our annual assumptions. In the current fourth quarter, we launched new investments because we managed to finalise the protracted administrative procedures and this will be visible in the annual results.

Photo: Centralna Vita, Develia

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