{"id":457,"date":"2017-12-15T10:08:29","date_gmt":"2017-12-15T10:08:29","guid":{"rendered":"http:\/\/ceo.com.pl\/en\/?p=457"},"modified":"2017-12-15T10:08:29","modified_gmt":"2017-12-15T10:08:29","slug":"hunting-investment-land-41410","status":"publish","type":"post","link":"https:\/\/ceo.com.pl\/en\/hunting-investment-land-41410\/","title":{"rendered":"Hunting for investment land"},"content":{"rendered":"<p><strong>The deficit of attractive investment areas makes developers fiercely compete for the best offers; however, they try not to buy at all cost.<\/strong><\/p>\n<p>Rates of return on investing in commercial real estate in Poland are higher than in Western Europe. According to Walter Herz analysts, the best commercial facilities bring about 5 per cent of annual profit, office projects &#8211; 5.25 per cent , whereas warehouses &#8211; 6.5 per cent. Thus, Polish investment market attracts an increasing number of international investors. Specialists inform that sometimes, the best properties are sold even before the commercialization is completed and the tenants are introduced.<\/p>\n<p>Developers who want to take advantage of the market boom, quickly implement further projects. The largest companies start several projects at the same time, constantly looking for attractive plots of land. The deficit of well-located plots means that the fight for the best investment land is fierce. Demand for land in the most developed locations in the country is now bigger than ever. Walter Herz advisers admit that it significantly exceeds supply.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/ceo.com.pl\/en\/hunting-investment-land-41410\/#There_are_fewer_and_fewer_attractive_lots\" >There are fewer and fewer attractive lots<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/ceo.com.pl\/en\/hunting-investment-land-41410\/#A_strong_increase_in_demand_for_land_for_residential_construction\" >A strong increase in demand for land for residential construction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/ceo.com.pl\/en\/hunting-investment-land-41410\/#Land_wanted_for_large_hotel_facilities\" >Land wanted for large hotel facilities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/ceo.com.pl\/en\/hunting-investment-land-41410\/#Land_prices_are_rising\" >Land prices are rising<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"There_are_fewer_and_fewer_attractive_lots\"><\/span>There are fewer and fewer attractive lots<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to the specialists, finding a plot in a prestigious location that allows for a quick launching of the construction is very difficult. Investment land is selling great, despite its prices going up. Investors, however, do not participate in the mad race to finalize transactions, which could be observed during the last boom in the last decade.<\/p>\n<p>According to Walter Herz data, the availability of investment areas within the inner-city areas in Warsaw is much lower than in the regional cities. The capital offer, however, is slowly growing, because more and more landowners decide to sell the land. This particularly applies to the areas near the second metro line. However, specialists point out that the asking prices are often not accepted by the investors.<\/p>\n<p>Just like in Warsaw, it is increasingly difficult to find land for investments in well-connected areas of Cracow and Gda\u0144sk. Experts are of the opinion that Wroc\u0142aw, \u0141\u00f3d\u017a and Katowice have a larger plot selection. Recently, HB Revis has invested in \u0141\u00f3d\u017a and signed a preliminary contract for the purchase of post-industrial areas at Targowa Street. The investor plans to build a complex of several buildings and revitalize existing buildings on a 1.8-hectare plot, which is located in the immediate vicinity of EC-1 \u0141\u00f3d\u017a, Nowe Centrum \u0141odzi and \u0141\u00f3d\u017a Fabryczna Railway Station.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_strong_increase_in_demand_for_land_for_residential_construction\"><\/span>A strong increase in demand for land for residential construction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Walter Herz&#8217;s advisers point out the negative effects of the introduced legal changes concerning farmland transactions. According to the specialists, the new regulations have contributed to reducing access to investment areas. In their opinion, limiting land transactions will also bring the creation of a state-owned land resources, that is National Real Estate Resources (KZN). In addition, they point out that a large obstacle for investors is also the general lack of approved, local spatial development plans, which is mainly practiced at Warsaw and \u0141\u00f3d\u017a.<\/p>\n<p>According to the experts, the growing land prices do not translate into increases in rental rates for commercial space lease. On the other hand, they have an impact on the increase in apartment prices, especially as the share of land in the costs of constructing residential projects has now risen to 20-25 per cent. Recent increases in apartment prices are a particularly interesting phenomenon in the context of the ongoing market boom in the residential segment. Developers are currently selling twice as many homes as during the boom ten years ago.<\/p>\n<p>The experts talk about a very clear increase in demand for land for residential construction and a stable, but also considerable interest in real estate for the construction of the office projects. The companies operating in the residential real estate segment, which have considerable cash surplus, form the largest resources of land, thus securing long-term investment plans. Also, the investors from the office market are showing high activity. Moreover, the specialists observe a significant demand for land for hotels and commercial facilities.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Land_wanted_for_large_hotel_facilities\"><\/span>Land wanted for large hotel facilities<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The companies operating in the hotel segment are also looking for land. Walter Herz analysts calculate that dozens of hotels are being built in the largest Polish cities, over 20 in Warsaw. Hotel developers are fighting for the best plots with residential and office investors.<\/p>\n<p>The Polish coast is also very popular among the developers. The hotels in that area have been recording very good results for several years. The most investments are carried out on the Tri-City market, which in the next few years may get several dozen hotel facilities, including several large complexes.<\/p>\n<p>In the highland areas, the most popular among investors are Podhale, Karpacz and its surroundings, Szklarska Por\u0119ba, Wis\u0142a and Krynica-Zdr\u00f3j. In these areas, also the supply of investment land is small, especially those that are suitable for the construction of large facilities. According to Walter Herz&#8217;s report, there are only a few such parcels in Zakopane. The limited supply of offers causes investors to drive up the prices. The situation is not improved by the increasingly emerging projects with condo apartments in these areas. The specialists inform that in the holiday locations the prices of plots for hotel investments are rather stable with an upward trend.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Land_prices_are_rising\"><\/span>Land prices are rising<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Developers are fiercely competing for the areas on the main arteries in the best locations, but they are not willing to overpay. They only buy land that guarantees an optimal level of investment profitability. Walter Herz experts emphasize that the most popular are the plots in the best locations that have no technical and legal problems. And it is these plots that achieve the highest transaction values.<\/p>\n<p>In these cases, the period of negotiations is shortened to the minimum due to the possible taking over of the land by another investor, and the initial rate is raised up by several dozen per cent. Nowadays, outside of Warsaw, companies compete for interesting plots also in Wroc\u0142aw and in the Tri-City, where the investment market has accelerated.<\/p>\n<p>According to the specialists, the prices of investment land have been slowly growing in the largest agglomerations in Poland since the beginning of last year. Over the last 12 months in Warsaw, rates have increased by about 20 per cent, and for some areas much more. Some valuations are already close to those of record highs from 2007. The land prices are also growing more expensive in the Tri-City, in Wroc\u0142aw and Cracow. In smaller cities, prices increased by several per cent.<\/p>\n<p>According to the experts, the prices are primarily raising due to the growing demand for land, and the increases are not dictated by the increase in profitability of planned investments in individual locations. For example, if the profitability of the project is to be maintained at a good level, the cost of buying land for office investments cannot be much higher now, because rental rates for office space in large cities have slightly decreased.<\/p>\n<p>Author: Walter Herz<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The deficit of attractive investment areas makes developers fiercely compete for the best offers; however, they try not to buy at all cost. Rates of return on investing in commercial real estate in Poland are higher than in Western Europe. According to Walter Herz analysts, the best commercial facilities bring about 5 per cent of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":458,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[8],"tags":[166,75,73,64,133,106,82,130,71,2720],"class_list":["post-457","post","type-post","status-publish","format-standard","has-post-thumbnail","category-real-estate","tag-gdansk","tag-katowice","tag-lodz","tag-poland","tag-tri-city","tag-walter-herz","tag-warsaw","tag-western-europe","tag-wroclaw","tag-zakopane"],"jetpack_publicize_connections":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/457","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/comments?post=457"}],"version-history":[{"count":0,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/457\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media\/458"}],"wp:attachment":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media?parent=457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/categories?post=457"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/tags?post=457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}