Buying an apartment for investment purposes – is it a good time for purchase? Which location is worth investing now and what are the next steps?

In the current economic environment in Poland, with rising inflation and low-interest deposits, the purchase of a real estate for investment purposes is still a popular way to invest and protect the value of capital over time.

Despite the shock caused by the pandemic, the residential real estate market turned out to be quite resistant to the implications of the introduced restrictions and now, after several months of slight slow down, on the markets of the largest Polish cities, we can spot continuation of the trends that characterized it before the turn of the first and second quarter of 2020: shortly, both the number of units sold and their selling prices remain on the rising wave and there is no sign of a reversal of this trend in the nearest future. Certainly, condition of the housing market is good and favorable to investment, unlike commercial real estate, which was more affected by the pandemic factor and still remains quite uncertain direction of investment.

Where is it worth to invest to get a good rate of return and attract tenants who will want to stay for longer? What can we do if we do not want to spend too much time on making the apartment ready to move in, and then minimize all activities related to property management? When choosing a city to invest in property, it is worth to focus on a location that has a development potential and its local real estate market shows signs of balance or growth. In 2021, both these features could be seen on the markets of the largest Polish cities, such as Warsaw, Gdańsk, Kraków, Wrocław, and Katowice as well. In this entry, we want to show you why Katowice is an interesting market where it is worth to invest in real estate.

The dynamic development of Katowice, which has taken place in recent years, manifests not only in changing architectural landscape and successively modernized infrastructure, adjusting character of the city to the needs of its inhabitants, but also in business development. Recently emerging business centers and a wide range of faculties available at local universities attract residents from all over the region, who can also find a wide cultural and entertainment offer in Katowice, including the Katowice Cultural Zone. Being the undisputed capital of the region, Katowice consciously develops its potential by creating a space perfectly suited to the needs of its residents. Green areas, which constitute as much as 50% of the city’s area, are withal important advantage of this location.

The real estate market in Katowice is also developing favorably. What differs this city from other agglomerations is the great potential for increase at the apartment rental market. It is forecasted that the demand for apartments for rent in Katowice will grow in the nearest future, and currently this market segment shows a dominance of demand over supply. Such condition definitely speaks in favor of investing in apartments for rent, and attractive prices of apartments in Katowice, compared to valuations in other large Polish cities, are an additional reason.

According to reports from the Q2, 2021; the average price of a flat on the primary market in Katowice was PLN 8,238. In the Q1 it was PLN 8,069; and comparing the prices from a wider time span, a growing tendency can be observed, which is in line with the trend also observed in other main Polish cities.

When considering an investment in Katowice, Pierwsza Dzielnica (the First District), one of the most recognizable addresses on the map of Katowice, will be definitely an interesting and noteworthy address.

Why is it worth to take a closer look at this particular investment? The Culture Zone, well-organised communication network, green and recreational areas, service points, a kindergarten, an extensive resident zone – all above is at your fingertips. We can find here various sizes and functional layouts of apartments, tailored to the needs of singles or students, families with children or seniors as well.

The developer, TDJ Estate, which specializes in the implementation of projects, i.e. in the housing sector, willingly implements bold and ambitious projects, engaging external partners specializing in their fields and able to meet the requirements of customers.

Leach & Lang Property Consultants has been among the partners, which since the first stage of the investment was commissioned, has been dynamically operating in the field of services related to the real estates.

It is worth knowing that after purchasing the premises, we have the opportunity to outsource works including interior design, organization of finishing, and after arranging a turnkey apartment – also administering the rented premises. Leach & Lang offers lease management, including brokerage in finding a tenant.

When purchasing premises in the First District investment, you can take advantage of the premium package in the field of property management.

The wide offer includes, among others:

• organizing insurance, real estate tax registration;

• cooperation and signing contracts with media suppliers

• cooperation with building administrators

• acquiring tenants, signing contracts, handing over flats

• organizing possible repairs

• monitoring of receivables, transfer of payments

• updated financial reports

• hand over of the apartment, securely storing of keys

• advice on re-renting a flat according to the current market situation

The management proposal has been prepared especially for clients of the First District and is available on preferred terms. All of the above saves our clients` time, nerves and money. However, these are not all the benefits – it is worth emphasizing that such cooperation simplifies the entire process and guarantees its professional implementation at every stage.