Investment lands of gold. There it is worth investing capital

High housing prices and rising demand for new premises make plots in city centers and attractive districts a greedy morsel for investors. The fight for the best locations is getting fiercely, and developers must react quickly to changing market conditions.

Investment lands are tempting

The investment land market in large cities remains extremely attractive, mainly due to high demand and limited supply.

– As with most goods, the attractiveness of land is primarily determined by the demand and supply game. The demand for apartments in large cities and well -connected towns in their agglomerations is much higher than in smaller centers. In particular, this applies to well -located land, the availability of which is limited, which further drives interest – explains Sylwester Śniadecki, president of Śniadecki Development in an interview with “Wprost”.

What determines the attractiveness of land?

Many factors decide about the attractiveness of a given area.

– With a long investment horizon (usually several years), the demographic forecast is of key importance. Despite the general announcements of the decline in the population in Poland, in large cities and agglomerations, the number of inhabitants is to remain stable, and in many cases to grow. The decline in the population will, however, affect mainly smaller cities and rural areas – forecasts Śniadecki.

Some locations are distinguished not only by the central location, but also with values ​​extremely interesting for investors.

– Locations offering access to green areas, the proximity of parks and infrastructure conducive to active recreation are considered particularly desirable. For example, in Krakow, the highest prices are achieved by land along the Vistula riverbed, offering attractive views and access to recreational spaces – notes Karolina Opach, Sales and Marketing Manager at Mercator Estates.

Investment potential of the capital and the agglomeration

Land with the highest investment potential? Well, we don’t discover America – this is of course Warsaw. In addition to the capital, it is also worth paying attention to the largest regional cities.

– The greatest potential is invariably offered by land in large cities, i.e. where housing demand has permanent foundations such as economic development, population inflow and good professional perspectives. Warsaw is particularly distinguished, where, apart from high earnings and an active labor market, we also observe the greatest interest from individual and institutional investors. This means that land prices in the capital are rising faster than anywhere else, and the competition when buying is huge – explains Śniadecki.

He indicates that we are currently observing a dynamic increase in land prices also in other large cities, such as Kraków, Wrocław, Tri -City and Poznań.

– Many attractive plots do not go to the open market at all and are the subject of talks conducted in a small group of owners and potential investors. That is why relationships and speed of action are so important – he emphasizes.

Demand for old – there is the greatest development potential

The growing restrictions on the availability of new land mean that investors are increasingly focusing on existing areas that can be transformed or revitalized.

– In connection with the shrinking availability of new land in cities, the importance of objects requiring revitalization, such as old post -industrial buildings, warehouses or tenement houses for reconstruction, is growing. Brownfield investments, i.e. implemented in previously built -up areas, which can be adapted to new functions, also have more and more potential. This is a demanding segment, but more and more attractive from the point of view of availability and the possibility of creating projects with a unique character – indicates Karolina Opach.

Investment land is a large arsenal of risks

The investment land market tempts, but it is not risk -free.

– The purchase of investment land is associated with a number of threats, which is why it is crucial to examine it thoroughly – both in legal, planning or technical terms. Traps can occur at any stage of the investment process. They often relate to the need to limit the assumed building surface, formal procedures or protests of neighboring owners – emphasizes Śniadecki.

Experts emphasize that formal procedures are also problematic: investors may come across the requirement to obtain additional opinions or arrangements or to protests from neighboring owners, which leads to delays in obtaining a building permit.

– Realistic estimation of the plot value is already crucial at the stage of signing the obligation agreement. Overcoming the purchase price can significantly reduce the profitability of the investment, especially if it turns out that more than competitive developers in the area were paid for a square meter of the apartment created on a given land. In such a situation, market competition becomes much more difficult – he notes.

How to minimize possible risks?

According to the expert, one of the basic steps is the absorption of the area, which determines the investment potential of the plot.

– It is also necessary to carry out a legal duel, which will confirm the lack of loads of the plot, check the records of building conditions and the local plan – indicates Opach.

He adds that potential revenues are evaluated in parallel, analyzing the competition and the client’s profile to confirm the legitimacy of the purchase price.

– In each of these aspects there may be traps that will ultimately make the purchase not occur. It is becoming more and more difficult to find the area in an attractive location, with a regulated legal situation and at the price enabling the creation of a competitive offer. That is why companies with experienced teams and access to experts in the field of planning, design and administrative procedures have an advantage – notes the expert.