Trei Real Estate (“Trei”), an international developer and asset holder for residential and retail real estate, just launched sales of another 98 apartments in the Polish city of Wrocław. The apartments are built as part of the fourth construction stage of the “Bacciarellego 54” development. This fourth construction stage will consist of six buildings, including four three-storey townhouses. The construction work will commence during the first quarter of 2022, the completion being scheduled for the fourth quarter of 2023. Overall, the “Bacciarellego” project comprises 280 apartments, developed in four successive construction stages. Trei is investing a total of 38 million euros in this development.
Pepijn Morshuis, CEO of Trei Real Estate, commented: “The Polish housing market is currently breaking one record after another. During the first half-year of 2021, around 39,000 apartments were sold in Poland’s six largest cities, according to Jones Lang LaSalle. The figure represents the best mid-year result in the history of that market. Developers can barely keep up with demand. Within the framework of the Bacciarellego project alone, we sold 60 apartments over the past six months.”
All of the important key ratios make it reasonable to expect Poland’s residential real estate market to keep prospering for the time being. Demand for modern apartments is huge, whereas supply is very limited.
Pepijn Morshuis had this to say: “The majority of the rental apartments on the market are no longer up to date and fail to meet the requirements of occupiers and buyers. That is why the market for ownership apartments is breaking one record after another. Analogously, more and more people are showing an interest in the open rental market, which is only just emerging. One of the key advantages of the market is that it is barely regulated. We have noted a growing number of cross-border investors from the US, the UK and Germany who intend to invest in Poland. These investors are hunting for yield. They are eager to enter the market cycle early on, because yield compression is sure to kick in, even in this segment.”
Morshuis dazu: „Der Großteil der vorhandenen Wohnungen ist nicht mehr zeitgemäß und entspricht nicht mehr den Anforderungen von Mietern und Käufern. Deshalb bricht der Markt für Eigentumswohnungen alle Rekorde. Auch der freie Mietmarkt, der erst jetzt im Entstehen ist, verzeichnet wachsendes Interesse. Einer der großen Vorteile des Marktes ist die geringe Regulierung. Wir beobachten verstärkt internationale Investoren aus den USA, UK und Deutschland, die in Polen investieren wollen. Diese Anleger sind auf der Suche nach Rendite. Sie wollen früh im Marktzyklus einsteigen, denn die Renditekompression wird auch in diesem Segment kommen.“