In recent years, there has been a noticeable shift in preferences among the younger generation when deciding to purchase their first home. Until recently, the dominating factors were location, size and attractive price. Nowadays, the technologies available in the buildings, ecology, and the offer of additional functions are increasingly brought to the forefront.
The young generation is already making its mark on the real estate market
The preferences of the younger generation are significantly changing the market. Freedom of choice is a value that is foremost among young people. This is why they do not want to decide on buying a flat and the mortgage related to this decision, limiting their possibilities to change their place of residence. Renting a flat allows the youth to freely choose a place to live, and this forces real estate market investors to increase the competitiveness of their offer and attract customers with additional possibilities tailored to their needs. Hence, the growing popularity of co-livings, created for selected social groups: young people, seniors, students or young couples.
Common areas are the new magnet
In recent years, there has also been a noticeable increase in interest in solutions that were almost exclusively reserved for premium class investments. Meanwhile, long-term rental market investors saw the opportunity to build their competitive advantages based on spaces that integrate young people, who can participate in social life at their place of residence. The list of amenities includes a gym, fitness area, playground or recreational terrace, which provide a full range of options for spending free time and neighbourhood integration.
Solutions that provide many options for spending free time within the place of residence proved to be invaluable at the onset of the pandemic, when contact with the outside world was limited to a minimum. Over time, it became clear that access to common areas is on the list of factors considered when choosing a place to live for young people. This trend is particularly visible in the private halls of residence sector and properties intended for long-term institutional rental.
“Building our dormitory from scratch, we focused on creating a unique meeting place for the student community in Tri-City” – says Karol Wojtas, a member of the management board of Silver Rock, the company which prepared the Collegia dorm in Gdańsk. “We entrusted the project work to a professional architectural firm that brought the interior designs of the house and rooms closer to the comfort offered in 3*** hotels. In addition, we introduced amenities such as a professional fitness facility, game rooms with gaming consoles, ping pong tables and other activities, as well as study rooms and a fully equipped music rehearsal room for musically inclined students. The best testimony to the accuracy of our direction are the excellent occupancy figures for the property which, half a year before the beginning of every academic year, has all its rooms rented out.”
Jednym z najnowszych wariantów tej technologii jest prefabrykowane budownictwo drewniane, które z uwagi na swoje proekologiczne właściwości, cieszy się coraz większym zainteresowaniem ze strony świadomych młodych dorosłych.
Technology in the service of ecology
One of the most important technologies that has significantly gained popularity in Poland in recent years is modular construction. Polish companies specialize in this segment, covering more and more market segments. These are no longer just designer standalone houses that you can purchase from a catalogue and place wherever you want, but also high-rise buildings reaching several dozen storeys. These modular buildings are designed for the hotel market, office market, apartment market, co-livings, but also educational facilities such as schools and nurseries, and other public utility buildings. One of the latest variants of this technology is prefabricated wooden construction, which, due to its pro-ecological properties, is attracting more and more attention from conscious young adults.
The main advantage of modular technology is its full diffusibility, or so-called “wall breathing”, which creates an ecological microclimate, making these buildings very healthy, more effectively maintaining temperature and therefore more user-friendly – says Tomasz Balcerowski, president of the managment board of EKOINBUD, a company specializing in the design and construction of modern prefabricated houses and modular public buildings. A supplement to these types of objects is the use of solutions that increase their energy efficiency, such as photovoltaic panels, underfloor heating or mechanical ventilation with heat recovery, which are increasingly popular. The younger generation is increasingly interested in ecology and living conditions, therefore the popularity of wooden objects, including those where their children spend time, is of great importance.
The rental market is doing well
The uncertain economic situation caused by inflation leads many young adults to still consider renting a flat as an effective alternative to long-term credit commitments. As a result, long-term rental is strengthening its position on the real-estate market. Forecasts indicate that this market segment will continue to develop vividly and prospectively will become a permanent option for a significant part of young adults. Investors, mindful of the growing demands of this group, are trying to meet their needs and equip properties in such a way that they are as attractive as possible for potential tenants. Therefore, they are increasingly cooperating with professionals.
“Our experience gained from finishing hotel interiors works well for interiors designed for professional leasing” – says Daniel Ochońko, the president of Trust Us, a company specialized in finishing commercial facilities. “The age-old problem for investors is finding a balance between design, durability and price. Savings should never be associated with the quality of equipment – materials that are durable do not always have to be expensive. From the perspective of a landlord renting out a property, there are two risks – on one end there is overinvestment, significantly delaying the possibility of obtaining real profits, on the other – budget equipment that will sooner or later require repairs or replacements, thereby eventually generating additional costs. Careful selection of materials in collaboration with an architect and contractor from an early stage will certainly generate significant savings.”
The situation on the Polish real estate market is very dynamic. It is clear that representatives of the younger generation are increasingly looking for new solutions and their needs may, in the not too distant future, cause significant changes in the housing market.
