Luxury apartments are still less than 1% of the primary market in Poland, but their popularity among buyers is growing. Since the beginning of 2020, the average quarterly sales volume in this segment is double the number set between 2017 and 2019.
Resilience coupled with timeless luxury
Over recent years, all segments of the residential market have experienced price increases. In Warsaw it amounted to approximately 10% per annum. However, it is the high-end segment that has seen the most dramatic price increases. An analysis of the offer prices of units in Warsaw’s luxury segment between 2014 and 2021 indicates that the average price rise for this type of property was 68%. For the entire offer on the primary market, the increase in the average price was 52% while the low-end segment was further back with a 40% rise,
comments Urszula Kowalska, Senior Consultant in the JLL Residential Advisory.
Premium, but still good value when compared to Europe
No shortage of buyers for high-end apartments
Given the characteristics of the luxury segment, it is not surprising that in the current climate there is growing interest in purchasing this type of property, which not only ensures that real capital value is maintained, but with good investment choices, also offers some of the highest yields in the property market. Average quarterly sales since the beginning of 2020 have doubled compared to quarterly results in the previous three years,
indicates Urszula Kowalska, Senior Consultant in JLL's Residential Advisory.
The market can afford more, so it continues to expand
This change is not only seen in the rise in interest in premium flats. It is also reflected in the increasing differentiation in the demand of groups in the primary residential market. The number of buyers whose standard of living is increasing, are looking for larger, better-located properties with improved finishing. The increasing number of affluent people also increases the potential group of buyers of flats from this particular segment. The next few years for the luxury real estate market will certainly bring further development, which will be accompanied by rising apartment prices,
concludes Urszula Kowalska, an expert at JLL.
Residential Marketing & Communications Manager JLL