The investment property market in Poland is clearly changing. Just a few years ago, the most important criterion when buying an apartment was location understood in a quite simple way – big city, center, good communication. Today, investors approach the market much more consciously. They analyze not only the potential profit, but also the risk profile, seasonality, lease management possibilities and the potential of the place in the coming years.
Experts emphasize that an apartment in Warsaw, an apartment by the sea and a property in the mountains are currently three different investment products that respond to different needs of investors.
– An apartment in a big city is analyzed differently from an apartment in a tourist destination – emphasizes Karol Szumański from Marshall Real Estate.
As the expert points out, choosing a location less and less comes down to answering the question “where to buy”. It becomes much more important what function the property should play in the investor's portfolio — whether it is primarily intended to protect capital, generate stable income, or provide higher rates of return with greater risk.
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An apartment in a big city. Stability remains a key advantage
According to Karol Szumański investment apartments in the largest Polish cities are still a solution for people looking for predictability.
— The capital is a market with high liquidity, both in terms of long-term lease and possible sale, says the expert.
Large cities offer, above all, wide and stable demand. The market is driven by students, corporate employees, job migrants and the growing service sector. Thanks to this, investors can count on more predictable financial flows and less susceptibility to seasonal fluctuations.
As Szumański notes, cities are increasingly acting as “safe havens” for capital. This is particularly important in periods of greater economic uncertainty and high volatility in other investment markets.
However, the expert points out that Even in large cities, investors analyze many more factors today than a few years ago. What matters is not only the location of the building itself, but also the development of infrastructure, access to green areas, communication and the potential of the district in the coming years.
Apartment by the sea. Seasonality is no longer the only challenge
The analysis of real estate in tourist locations is completely different. In this case, the potential profits may be higher, but the level of risk also increases.
— Tourist locations such as Zakopane or Kościelisko offer potentially higher rates of return, but are subject to greater volatility primarily due to seasonal occupancy – emphasizes Karol Szumański.
The expert notes, however, that modern investors understand the specificity of such properties better and better. More and more often, he no longer only looks for popular places, but analyzes them real year-round potential.
As Szumański explains, in the case of seaside locations, the key importance today is not only the proximity to the beach or tourist center.
— In the case of towns such as Łeba, it is very important real attractiveness outside the summer season. It largely determines the annual profitability of the investment, he points out.
They are also becoming more and more important infrastructure investments, development of gastronomy and availability of attractions operating all year round. Investors are also analyzing level of competition on the local apartment market.
The expert points out that in practice it is often an underestimated element logistics of everyday real estate operation.
— It is very important availability of parking lots and the possibility of efficient remote rental management – says Szumański.
In his opinion, it is also growing the importance of projects cooperating with professional rental operators. More and more investors want to treat real estate more like an investment product than an asset requiring daily commitment.
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Apartment in the mountains. The view and intimacy affect profits
The mountain real estate market remains even more specific. Here, elements that often play a secondary role in other locations are of key importance.
— In locations such as Kościelisko investors pay special attention to the scenic values and the intimate nature of the investment. These are the elements that have a real impact on rental rates, emphasizes Karol Szumański.
In practice this means that an apartment with a view of the mountains can generate much higher income than a similar property without such advantages. The limited supply of land in the most attractive locations remains equally important.
The expert also draws attention to: communication issues.
— It matters a lot transport accessibility, especially in the winter season, and the quality of the rental operatorwho should have experience in serving the demanding mountain market, he says.
As he adds, investors are increasingly consciously distinguishing between the premium segment and the mass market.
– These are two completely different business models, with different target groups and different revenue dynamics – notes Szumański.
In his opinion the premium market is becoming more and more resistant to price competitionbecause customers today are looking not only for accommodation, but also for the entire stay experience – quality of architecture, privacy, wellness zones and high standard of service.
Investing in real estate. Trends and lifestyle are becoming more and more important
Real estate market experts emphasize that contemporary investment decisions also increasingly depend on social and lifestyle changes.
As Karol Szumański notes, just a few years ago issues such as: workation, place brand in social media or access to green areas. Today, these are elements that often determine the attractiveness of an investment.
In his opinion investors increasingly look at real estate in the 5-10 year perspectiveanalyzing not only current profits but also future resale value.
At the same time it is growing the importance of formal issues. Investors are checking local development plans, regulations on short-term rentals and the tax model more closely.
— The most important questions today concern whether a given destination has year-round potential, what the customer structure is and whether the market is no longer saturated with competitive investments, says Szumański.
The expert emphasizes that this is why it is becoming more and more popular diversification of the real estate portfolio.
“More and more often, well-built investment portfolios combine city and holiday properties,” he notes.
As a result, as Karol Szumański summarizes, the best investment decisions today no longer result from choosing one “ideal location”.
– The most important thing is to skillfully match the property to the investor's strategy and risk tolerance – sums up the Marshall Real Estate expert.
