Leszek Michniak WGN Real Estate

In 2008 and in the first half of the 2009 year, were the most spectacular discounts prices of grounds, which reached even 60%. In the second half year were the lower discounts, about 15-40%, because of the more realistic prices of the offers.
From the last year we can notice about 45 % of decrease in grounds’ demand.
However people are still interested in grounds with favourable price and location for the specific function: office buildings, hotels, storehouses and industrial plants.
The grounds are considered as the good investment, only if are in realistic prices. The investors are interested in grounds of the area of 3000-5000sq.m. in the boundary of the city for services, trade, offices, storehouses, and plots for industry, of the area of 1, 5 ha in the boundary of the cities or on the outskirts.


There is still possibility to find “bargains” on the market. Despite of the high offers prices, it is worth to negotiate.
In the property segment, the big demand of sale offers in comparison with the offers to buy is going for around in the properties 18:1 (according to WGN data). This year promises to be favourable for investors. They can expect the next, decrease of higher prices of properties. The new investments are still dependent on the banks’ credit policy.

Retail outlets
There is the previous trend i.e. the high demand for purchase of the well located services establishments and retail outlets. There is virtually shortage in the most favourable locations. The owners are not often willing to get rid off because are lucrative, but even if, that will fast find the purchaser. Because of that, there are more spaces to rent than for sale in the cities centers.
However, the bigger demand is in location beyond the cities.
The spaces located near the shopping precincts and pedestrian ways find the buyers; the spaces that are bad situated do not arouse the purchaser, even if the occasional low prices. The future owner must be certain that the lessee will achieve appropriate income and pay for rent. The frequent rotation of lessees is very unprofitable.

The tendency is changing during the last months: the lessees are more interested in the higher of the rent to the slow down in trade and services in the last year. The spaces at highest rental prices are empty.

Office spaces
In the last year, in the most of big cities in Poland, it was easy to notice about 40 % decrease demand for office spaces, what translated into the decrease of rental prices. The tenements are interested in spaces from 50-300 sq.m., less big ones, more than 1000 sq.m.
The International concerns, which locate theirs management centers in this part of Europe, are good clients for developments building in the system “build to suit”.
Because of the fact, that they need biggest, more modern spaces of some thousand square meters, they decide to wait for finishing office buildings that are in accordance with theirs specific needs.
When choosing the office space, the polish companies are interested in the price criteria. Taking into account foreign companies, the main interest was the high standard of office.
In 2009, the wait and see developers’ attitude was characteristic on the office market. Reasons for it are like that: the observation of tendency in the market before taking decision, or the necessity towards the difficulties in receiving a loan. Banks raised the standards for developers, for example, demanding of sign the pre-let agreement for minimum 50 % office spaces- what was not easy in the last year.

Housing market
From the beginning of the year the increase of demand for purchase flats and growing balance between supply and demand is noticed. At same, the prices are stable and nothing shows that it will still drop.
The complicated procedures and more detailed screen of the potential borrower by banks made the process of purchase property longer. According the WGN analyses, in 2009 “the average Kowalski” took out a loan for purchase that worth about 40% less than the same year before. So, unless the last year decreases offer prices, which were in some cities event of 26 %, and also the openness of seller for negotiations, the purchasing power of society was lower.
There is still tendency of purchases with the investment character, particularly 2 rooms’ flats for rent in big cities. It increases the apartments offer for rent, what is translated into the favourable rental price decrease.