The interest in small apartments has always been very large, but since the market has soared. investment purchases, small premises are almost in demand.
Compact apartments with an area of up to 40 sq m. they disappear from the offer of companies instantly, immediately after the sale. They are spreading even before the construction starts, because during the pre-sale the developers offer the best prices.
They are looking for young people with limited creditworthiness, for whom a studio or a small two-room apartment is an alternative to renting. However, the main recipients of such dwellings, especially in the last two or three years, are people who want to safely invest capital.
There are many amateurs on functional twos with an area of thirty meters, because according to analysts’ recommendations, their rental brings the largest return on investment.
They fulfill the function of a two-room flat, at a low cost of purchase and finishing, which allows to obtain the highest rentability. For some time, investors have bought such flats with a view to resale quickly and profitably.
Investment buyers pay for real estate mainly in cash. They often invest funds from bank deposits, of which PLN 22 billion has been withdrawn in the past year. Motivating to liquidate deposits are for them, among others announcements of representatives of the National Bank of Poland on keeping interest rates at record low levels for the next two years, which results in low interest rates on deposits.
According to NBP data, in the fourth quarter of last year, the share of cash transactions related to the purchase of new apartments in the seven largest cities in the country increased to 74 percent. Analysts estimate that in 2017 on the Polish real estate market could have hit a total of 111 billion zlotys. And at the same time, banks are granting more and more mortgage loans. Last year was the best in six years in terms of the value of loans taken out.
Developers are trying to cope with the growing interest in small premises. In this respect, the companies that build in the largest cities in the country expand their offer. Investment clients are focused on premises with a large number of rooms on a relatively small area. And they provide such an offer to the company’s market.
Architects are trying today to arrange the surface so that it is as functional as possible. – At one time, studios were designed on the surface of up to 40 sq m, and now such a size is usually two-room apartments. Currently built premises are, however, better thought out and more useful.
Investment clients usually look for apartments in a good location, but at the lowest possible price. Hence, the discharge of compact apartments, which are characterized by low total prices.