Which factors are important for an investor to make the most profitable investment in real estate in Poland?
Arnold Gerfelder, CEO of Gremi Invest, answers the most pressing questions.
– What do you think, is it profitable to invest in real estate in Poland? Why?
– In order to answer your question, it is important to analyze important trends in the Polish economy for a potential investor.
So, what do we see today? Europe’s sixth-largest economy, stability despite the “Covid-19 crisis”, a predictable political environment, high growth rates, the lowest unemployment rate in Europe (after the Czech Republic), and excellent infrastructure.
Furthermore, I would highlight the growing number of labor migrants in Poland as a factor that positively affects investment forecasts.
Many people come to Poland not only to study but also to work. Consequently, a segment of the corporate lease is developing, i. e., when an organization pays for rent to its employees for an extended period.
It is an essential factor for the potential investor who wants to buy an apartment for rent.
To sum up, I would definitely recommend investing in real estate in Poland, since it is a steadily growing market, allowing investors to save and increase capital.
– Could you describe the benefits of profitable real estate in the corporate sector?
– There are many advantages, and they are apparent. To begin with, renting an apartment in Poland to a legal entity means transparency and stability. At the same time, it is essential for a foreign investor to find an intermediary who is well-versed in the legislation of Poland, knows the practical side of the issue, and understands what kind of property should be bought to get a high return on investment.
Gremi Invest guarantees the support of transactions, considering the short- and long-term interests of our client. We provide property selection, sublease terms, control algorithms, and all this is covered by our service and proven by years of practice.
This type of lease is also advantageous given that occupancy does not depend on the seasonality factor, as there is constant demand all year round.
Renting to companies offers even higher profitability. The rent in such cases is higher than when concluding a contract with a private person
– Where to buy an apartment in Poland to ensure maximum return on investment?
– According to Gremi Invest’s research, there are several priority cities for buying an apartment for investment purposes. These are, first of all, Katowice, Lodz, Bydgoszcz and Poznan. Our experts are well aware of the real estate market in each of these cities and can quickly select the optimal investment object for the client, either from our investment portfolio, or on an individual client’s request.
I would also like to highlight that there are many undervalued locations in Poland. In fact, business in the country is growing rapidly not only in large metropolitan areas, and the demand for rental housing appears in many other cities.
Our experts are constantly monitoring the market so that the purchase of real estate in Poland has become a profitable investment for our customers.
– If you choose a country to invest in real estate, why is it worth choosing Poland?
– In comparison with Ukraine, the advantages are obvious – Poland’s economy is growing, and the zloty exchange rate is stable, which contributes to a favorable investment climate. If we talk about real estate investments in the “resort countries” such as Turkey, Bulgaria, Montenegro, Georgia, the bottleneck of these areas is the seasonal demand for housing, and, accordingly, unstable occupancy of apartments.
In comparison with the countries of Western Europe, everything seems quite simple, Poland is closer geographically and in matters of mentality, similarity of language, etc. Besides, Poland’s economic growth rate exceeds those of many developed countries in Western Europe, which indicates a high potential for investment in real estate in Poland.
– One of the fears of potential investors is that renting to people who have come to Poland for seasonal work or, for example, to work on construction sites has great risks. These risks are due to the fact that such tenants will be negligent about the housing condition, and their employer won’t supervise it so carefully. Can you comment on this?
– I would focus on the structure of labor migration to Poland. According to the researches of IOM (International Organization for Migration), specialists of middle and higher ranks, who go to work in Poland from Ukraine and other Eastern European countries, today make up 43% of the total number of labor migrants. Today, IT specialists, doctors, and representatives of creative professions are migrating to Poland, not just common unskilled laborers. Therefore, the culture of treating rented real estate is also changing. Moreover, it is again a matter of the professionalism of your partner in profitable real estate investments. Gremi Invest takes over the process of operational management of the property and monitors the condition of the rental housing to maintain its investment attractiveness. As a result of our active work, you get a passive income in a stable currency while remaining confident and reassured that everything is organized correctly.
