We have a difficult year ahead of us. Advice for investors? Diversification of the investment portfolio and courage in looking for new opportunities – says Igor Łukasik, president of IŁ Capital.
In previous years, the pandemic had a major impact on trends in the real estate market. We were eager to look for a property outside the city. And in the city there are apartments, e.g. with a large terrace. Will there be a new quarterback on the scene this year? Maybe rampant inflation?
We will continue to focus on looking for properties that will allow us to live and function in comfortable conditions. It seems that developer activity in city centers and suburbs will maintain its pace. Especially since real estate is still a way to invest capital at a profit.
Will inflation drive the market or slow it down?
It is difficult to pass judgment on this matter. One thing is certain: investing in luxury real estate – and this is what my clients and I try to focus on – will always bring measurable benefits in the long run.
Investing in real estate is the best protection against inflation?
In uncertain times, it is best to diversify your investment portfolio. And not limit yourself to just one sector or field. We undertake such investments – i.e. diversified in terms of market niches – at IŁ Capital. We support athletes, we run a detached villa Siedlisko 518 Wzgórza Dylewskie, and we are involved in an educational project with Crypto4Freedom, in which we will educate about the cryptocurrency market. Proactivity is always the best solution.
Due to rising interest rates, loans are becoming more expensive. Many see this as a threat to the real estate market. There are even predictions that 2022 will be the year the “bubble” bursts. Is that possible?
We must remember that every change in the financial markets over the last few years is seen as a threat to the real estate market. As for the bursting of the “bubble” – we live in times when anything is possible. Therefore, each, and I emphasize each, investment should be carefully analyzed. It is impossible to determine a general trend at this point. And if I were to define one, it would be to observe, analyze, and then observe again and then decide on how to invest capital.
And if you have to invest, what should you invest in? Primary or secondary market? Out of town or in the city? Or maybe land?
The foundation of today’s investments should be, above all, a specific goal. And this is both at the level of individual and institutional consumers. If I know exactly why I want to buy a given land or property and I have a vision for it, the appropriate tools will be found. The point is simply to always answer the question: why?
May 2022 – launch of the government loan guarantee program for people buying apartments. Turmoil on the real estate market?
It’s hard to call it a confusion. Simply providing a government loan guarantee for people wanting to buy a flat may result in more people buying these flats. It’s a simple relationship. Real estate market – if it notices increased interest, it will certainly respond.
Your company deals not only with acquiring land, e.g. for developers, but also with risk assessment. Today it is probably exceptionally difficult. A lot of variables…
First of all, the regulatory environment and the situation on the financial market are changing. And we need to adapt to these changes the most as a business partner. What is important – with these changes, the consumer also changes. And it is crucial to our business.
We have a difficult year ahead of us. Your advice to investors?
Diversification of the investment portfolio and courage in looking for new opportunities. And also accurate calculation of the rate of return.Igor Łukasik
Former professional volleyball player. Currently, president of the management board of IŁ Capital, a holding of daughter companies operating in the real estate industry on both the Polish and international markets.