Do you want to know about forecast regarding the real estate market in Poland after Covid ? This is the right place.
The Polish real estate market has seen a remarkable boom in recent years, with construction projects, apartment and condominium sales reaching new highs.
In 2019, housing starts, apartment construction, and the value of authorized and accepted loans all reached high records. Apartment and condominium prices continued to rise and the vision of a correction seemed like a marginal idea.
Alas, in the category of bad luck, COVID 19 arrived and the real estate market suddenly collapsed. What will happen when real estate returns to normal for businesses, states and individuals?
The coronavirus or COVID-19 is a test case, a civilizational and humanitarian challenge that has long-term effects on the way human beings work, live and play. A whole part of the economy is impacted and it seems difficult to adapt in this new world.
Our daily lives have changed in many ways. We are no longer allowed to meet, go to the office, eat, shop and socialize as we used to. We have become more cautious in our travels. Working from home is subject to permissions and guidelines, and many offices are closed.
Fortunately, real estate market leaders can better serve their clients and ensure their own practicality.
Also, rather than traveling and going to fast food chains or restaurants, people, not only in Poland but all over the world, are making a smart choice by spending only on the essentials, medicines, mainly food, as well as household supplies.
The increase in the number of coronavirus cases in Europe and the necessary protection and prevention measures that have been implemented by each country have ensured a negative financial ripple effect. This could influence and change the real estate market.
In recent years, real estate companies or developers have not had to work only to invite and attract customers due to the high level of requirements. In fact, in the last quarter of 2019, the country is experiencing the completion of more or less 207,000 new apartments, which is the highest record so far.
In addition, the mild winter in Europe has also worked in favor of contractors. The result has been a steady type of demand for new apartments in Poland, most notably in the capital Warsaw, at more than EUR 2,600 per square meter in the first weeks of February 2020. Thinking post-COVID 19 with sustainable purchases are required.
There is a long list of agencies linked to the real estate market that takes into account developers, real estate agencies, construction companies, financial organizations such as lenders or banks and freight agencies, and material manufacturers. They all play a vital role in Poland's economy.
In recent weeks, the changes that have taken place as a result of the pandemic have brought a new influx of customers to the housing and real estate market. One sales support organization has seen a slowdown in real estate and has seen a situation where many buyers have been fighting and chasing the same real estate property.
According to the recent situation in the real estate market, companies and developers with well-designed digital procedures and online offerings will thrive. Today, many companies are just beginning to rethink themselves, preparing a fully online transaction model, offered by the real estate housing sector in particular.
Experts are also seeing a significant increase in spending on online marketing activities. In the new housing market or the primary market, an expert would not expect a decline in values as the case in many Asian markets.
Here, demand was extremely high, so after an almost complete stagnation of sales in the first week of February, the real estate market already seems to have experienced a strong recovery.
In European countries such as Poland, the consumption disaster will be more clearly reflected in a decrease in the number of potential buyers. The once high demand that often generated many competing buyers for the same property will now be significantly reduced.
Real estate companies and developers may now have to go into an uncharted area and start fighting for their customers. On the other hand, it should be kept in mind that historically, in vague cases, the housing and real estate market and, more specifically, land sales have proven to be safe investments.
There is already a visible increase in interest in offerings as well as sales and purchases. Developers can also reduce supply by delaying the completion of new developments.
The expected increase in new opportunities will likely be in furnished properties or in the secondary market. This transition period could result in an actual decrease in transactions.
Today, consumers are often used to go online. On average, the process of obtaining a property in Poland takes between four and six months.
On the other hand, due to the negative factors imposed by the management and media treatment of Covid-19 such as fear of going out, closed offices, courts and imposed home quarantines, developers have seen a change in customer behavior in relation to online activity.
As a result of this pandemic, buyers are now viewing listings online, giving them more free time in the current environment - it has happened in markets in various Asian countries, sales offices, as well as real estate agencies have been nearly closed for several months.
It is essential to remember that today's companies, which often have a well-developed web presence, are emerging victorious with smaller apartments of about 50 square meters for sale, many are refining digital strategies and processes, even preparing complete online transaction documents that include virtual property tours.
Real estate market experts are seeing improved traffic as well as considerable spending on marketing activities due to the factors brought by COVID-19.
While the long-term results are difficult to predict, the immediate results of the pandemic on the Polish real estate market are clear: the sale of certain types of real estate from the public market has been nothing short of spectacular.
All real estate companies are working hard to get through the crisis as far as tenants, end-users and their staff are concerned, while facing difficult trade-offs in their business.
In addition, many of the world's leading real estate companies are trying to find the perfect balance between preserving capital and strengthening their diversification.
In recent years, industry leaders have diversified their revenue streams, utilized online techniques and focused on the tenant experience.
The COVID-19 crisis has accelerated the demand for these changes in strategy and demonstrated that those who have not yet invested may need to catch up.
For example, some real estate agencies actively created and followed advanced digital analytics techniques prior to the health crisis, such techniques can help attract and retain tenants, value assets, negotiate commercial leases, and improve operations and the tenant experience.
Other immediate outcomes of the pandemic include the demand for meaningful engagement with employees and customers on safety and security in everyday settings and health as well.
Due to the outbreak of the coronavirus, real estate industry leaders are deploying and maintaining a common set of measures.
In the coming months, we will see a new order, a limited need and a greater polarization of consumer strategies and behavior.
Clients who need to create housing offers immediately will be more likely to offer their properties at lower prices or in diversified locations.
Uncertain economic conditions may cause them to forgo any major purchase obligations and spend the money on food and other necessities instead.
At this point, we have seen a significant increase in new solutions and tools to enable agents to present customers with the most enticing offers.
In addition, it would be wise to spend the free time to process, purify, collect as well as verify a complete database for a set of properties that you can happily return to when normalcy returns.
These are just a few of the new ways of communication and strategies that have been deployed in recent times.
So, what's next for real estate in Poland after COVID? Many players in the real estate market have been smart and prudent in starting with choices that defend the welfare and safety of all tenants, workers and end users.
Today, the wisest and savviest people will also think about how the real estate sector could be sustainably changed in the coming years and will change their methods.
Those companies that have successfully established and maintained their position in real estate, despite the pandemic, will go beyond simple adaptation. They will have taken open steps that will strengthen relationships with their workers, employees, end users, investors as well as stakeholders.
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