SPANIARDS BUILD APARTMENTS IN THE CAPITAL OF POLAND.

SPANIARDS BUILD APARTMENTS IN THE CAPITAL OF POLAND.

Which firms build most apartments? There are not companies of our neighbour country - Germany or the Scandinavians. There are firms from Spain. Yesterday in the hotel Marriott have been started a Spanish seminar Central Europe Meeting Point. Representatives of most important developers from the Iberian Peninsula have come to Warsaw on two-day meeting.

– For several months we observe a big interest among these investors in Warsaw. Especially it goes about market of residential estate. Till the end of 2007 we have 7% VAT rate. The Spanish companies want to take advantage and the want to offer their clients apartments for reasonable price. There is a big demand on apartments in the capital – says Andrzej Puncewicz from the firm Taxland Global Alliance, which counsels foreign investors in transactions on market of estate.

Among Spanish developers, who invest already in the capital, there is the mostly Fadesa. With the Polish company Prokom they build in the district of Wilanów two thousand apartments. Hundred of apartments are also constructed by Action Nieruchomości (Real Estates) which has overtaken the company Mostostal Invest. It realizes big projects in a district of Gocław and in the area of Bemów, near the historical Fort of general Bem. The company Ferrovial from Madrid is a shareholder of Budimex-Nieruchomości. It builds housing estates at Olbrachta and Malborska Streets, and it will start soon the construction of a complex in the place of the old depot at Inflancka Street . Another Spanish firm – Tasinsa - will build apartments at Stępińska Street near the crossroads with Puławska Street and Wilanowska Alee. It will be constructed soon an apartment house at Grójecka Street by the developer Riera-Marsa. 40 Percent of firm – only, which have arrived on our seminar, they are the first time in Warsaw.

It – with certitude – will be fruitable in the future with next investments – affirm Enrique Lacalle, the president of Central Europe Meeting. He wants to organize a similar conference next year.

Today the investors will have a breakfast with Michał Borowski, the main architect of the city, who will present free city fields under investments. Investors will be carried away afternoon on bypassing excursion. The purpose is to show the advantage of Warsaw .

Daily „Życie Warszawy”, dated 20.04.2006
http://zw.eo.pl/apps/tekst.jsp?place=zw_list_articles&news_id=85106

APARTMENS AND FLATS IN WARSAW

SOME SAMPLES OF APARTMENTS AND FLATS PRICES IN WARSAW

Sample prices of apartments in Warsaw:

pp #	bedr.	floor	sqm	balkon	Brutto
1	B	0	36,06	0	165 140
2	B	0	38,52	7,95	193 249
3		0	92,69	8,42	442 322
4		1	110,67	7,59	534 746
6		1	92,6	8,44	451 860
7		2	110,67	7,59	546 588
10		3	110,56	3,8	549 861
12		3	92,73	11,38	478 542
13		4	110,68	3,56	561 783
15		4	92,49	11,38	487 263
17	B	0	38,52	7,95	193 249
18		0	76,23	8,95	368 064
19		1	76,23	8,93	376 179
21		1	110,67	7,59	534 746
24		2	110,67	7,59	546 588
27		3	110,56	3,8	549 861
32		0	103,97	7,61	547 888
34		1	122,63	16,46	662 076
36		2	122,54	16,46	674 727
38		3	126,7	8,13	692 358
39		4	88,87	16,97	538 033
42		5	126,61	7,85	745 474
47		8	88,68	16,97	698 268
48		8	126,38	8,14	961 127
49		0	58,32	7,28	313 707
50		0	60,66	7,28	325 675
51		0	50,14	7,79	272 950
52		1	93,22	19,15	517 354
55		2	93,22	19,15	527 329
58		3	88,65	15,17	504 520
61		4	88,65	16,97	536 790
70		7	88,47	11,46	590 363
73		8	88,47	13,26	688 840
74		8	65,26	8,23	504 837
75		8	49,98	11,73	398 132

In quarter I 2005, the average price per sqm in Warsaw grew by just over 0.5% and is currently 4,365 PLN. At the same time, in relation to the same time last year, this is a growth of 12.2%. The majority of districts in Warsaw are characterised by the same tendency.

The highest growth in price per sqm was recorded in Żoliborz (14.96%), Ursynów (7.91%) and Saska Kępa (6.96%). The increases in average price per sqm in Saska Kępa and Żoliborz due to the domination of those markets by expensive apartment buildings. Shrinking supply (especially of the cheapest flats) has caused price hikes in the ever popular Ursynów.

Record falls in prices have been recorded in the, until recently, most expensive district – Śródmieście. New projects have lead to a price correction of over 40% for the price per sqm and total price and over 20% fall in the average size. We observed a similar situation in Bielany, the change here, however, was a lot flatter (-9.3% in the average price per sqm, -15% in the average total price, and -4.8% in the average size).

Over a period of 12 months the highest growth in the average price per sqm took place in Wola (43.44%) and in Bielany (32.72%), whereas the highest falls where in Ochota (-20.21%) and in Wilanów (-15.80%).

The price movements in the two first districts were the result of shrinking of supply, whereas Bielany and Wilanów owe their falls to an increase in supply.

Warsaw – average prices:

1st quarter 2005: 4 365; 4th quarter 2005: 4 341; 1st quarter 2004: 3 892; change in price per sqm - 1st quarter 2005/4th quarter 2004: +0,56%; change in price per sqm - 1st quarter 2005/1st quarter 2004: +12,16%

The biggest group is made up of flats from 3,500 to 4,000 PLN (over 1/4 of those for). It was exactly this type of flats that is of most interest in quarter I. Cheaper flats, from 3,000 to 3,500 PLN/sqm enjoyed a lot of interest. However, their share of sales was only 11%.

When we observe demand and supply in the two most popular price segments (from 3,500 to 4,000 PLN and from 4,000 to 4,500 PLN), we can see that customers accepted a somewhat higher price. What’s more, there is excessive to demand in the most expensive price segment, the opposite of the situation in the cheapest segment. We can see excess demand for flats costing from 4,500 to 6,000 PLN/sqm. The market for apartments which exceed 6,000 PLN remains balanced.