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The Apartment Conference

The conference under the name "The future of luxury apartments in Poland" which took place on 5 March 2008 in Jan III Sobieski Hotel, occurred to be a great success. A six-hour meeting attracted over six hundred guests. Among the people present, representatives of reputed developer companies appeared, as well as a few dozen institutional and individual investors and also well-known trade journalists.

The period of stabilisation brought about incertitude in the market and made the redNet Property Group experts search for the best investment niches. The culminating point of the conference was the presentation of the latest project - The redNet Consulting Certificate, which was developed in order to avoid abuses connected with imprecise definitions of an apartment. The redNet Consulting analysts, together with world famous experts, undertook the development of the definition. Flats which meet the conditions of this definition may be called apartments and therefore can receive the redNet Consulting Certificate. It will be a guarantor providing the buyer with the certainty of receiving high quality, and a developer with the increased prestige of the investment. Each developer can receive such a Certificate, should it have in its offer flats meeting the standards determined in the definition.

The first certificates have already been granted. They have been given to the following projects: Foksal Residence by BBI Development, Woronicza Qbik by Ghelamco Residential and Sky Tower - an investment by LC Corp.

Three reports have been presented during the conference:

• The future of luxury apartments in Poland elaborated by Robert Chojnacki, the president of the redNet Property Group.
• A house or an apartment - the prospects of the housing market elaborated by Marcin Gołębiowski, a redNet Consulting real estate analyst.
• Holiday projects elaborated by Elwira Bartuszek, a redNet Consulting real estate analyst.

The experts presented detailed information referring to new perspectives and tendencies in the real estate market and presentations of foreign projects which missed the price fever but which still have a growth potential in front of them. The most heated discussion was held after the presentation of the Margarita - perła Karaibów holiday project.

Significant interest was raised by another novelty - the presentation by Robert Chojnacki: Purchase done, so what is next - active management of the real estate portfolio, during which a pioneer product in the real estate market was presented - the management of a portfolio comprising real estates. Mr. Chojnacki revealed a few practical suggestions as to when it is best to sell real estates and how to generate the highest profit from it.

Besides this, five developer companies presented their latest projects:

• LC Corp - A project of the highest, 258-storey apartment building in Poland - Sky Tower, located in the centre of Wrocław, which after being handed in at the end of 2010 and beginning of 2011 will comprise 844 apartments.
• Ghelamco - the project of modern soft-lofts realised in Poland called Qbik Woronicza; besides 134 lofts it comprises 241 classical flats as well, the construction of which will start in the third quarter of 2008.
• BBI Development - alluding to the inter-war modernist style, the Foksal Residence is being erected in the neighbourhood of pre-war buildings next to the most prestigious part of the sunny Royal Route.
• Genfer Homes - 27 holiday apartments in the Casa Marina project in Świnoujście, located only 150 metres from the sea.
• Mielno Holding - Firmus Group - located just next to the beach in Mielno, a complex of 7 apartment buildings - Dune, comprising 103 apartments. more »

The conference, "The future of luxury apartments in Poland", showed investors investment niches which have vast perspectives of growth before them. Until the very end of the meeting, the room remained full of guests, which confirms the fact that investing in real estates and generating profit from them has been a very hot subject recently.

On the conference, redNet Media Sp. z o.o. announced establishing a new product www.luksusowemieszkania.pl, which is a technological alteration of www.tabelaofert.pl - a very popular internet service in Poland.

The factual contents are focused only around the segment of luxury offers meeting the requirements of the definition of an apartment suggested by the redNet Consulting analysts.

The luxury apartment market in Poland

The times when it was possible to generate a 100% return on an investment have passed. It is necessary to look for new investment possibilities abroad, or look for niches which were missed by the price fever and which have potential for large growth. This "niche" with large perspectives of a high growth, is apartments. In the last few years a rising interest in exclusive apartments has been observed among Poles. Potential buyers are not driven away by high prices per 1m2, which very often exceed several dozen thousand PLN. The economic situation is improved by the general progress in the quality of life of Polish people. The remuneration of the highly professional executives systematically grows, as unemployment falls. The factor reflecting the economic development and increase in the wealth of the society is the GDP, which has been dynamically increasing in Poland in the last few years and now is among the top large EU member states. Thus, the wealth of the Polish society is growing by the year faster than in Spain, Germany and Great Britain. Therefore, the group of potential buyers of apartments grows. For a considerable group, exclusive real estates become one of the most meaningful symbols of luxury and life success. On the other hand, developers want to have luxury apartments in their real estate portfolio from which they gain, apart from profit, typical image benefits. Having such real estates in the offer is aimed at improving the image of a company proving the high standard of the realised investments, and therefore increasing interest in other projects.

Insufficient supply is one of the reason for which the price of apartments may grow. Until recently, projects which deserved the name of luxury apartments were very rare in Poland and their sale did not encounter any difficulties resulting from the variations in the economic situation. Really luxurious apartments are usually less sensitive than other premises to the fluctuation of price, as, even in the time of crisis, there will be a group of people who can afford this luxury. Luxurious products, including apartments at the highest standard, are characterised by low price flexibility of demand, which means that they are highly desired due to the change in the price. It should be remembered that the market is subject to changes. Demand for apartments will always be present - even if there is a crisis in the market, the sale of e.g. Mercedes, does not fall. The question which should be answered is about what to build and sell to the customer - is it really an apartment and the smell of luxury or only a quite high standard? Should we compare our apartments with what is constructed around the world, it will turn out that the genuine apartments can be counted on the fingers of both hands.

Materials from the conference

The conference under the name: "The future of luxury apartments in Poland" (5 March 2008) attracted hundreds of interested people. Experts from the redNet Property Group presented detailed reports referring to new perspectives in the real estate market, and presentations of foreign projects which missed the price fever and which still have some potential of growth before them. The period of stabilisation has brought about an uncertainty in the market and forced our experts to look for the best investment niches.

The future of luxury apartments in Poland - Downloadable presentations:

Presentation 1 - Robert Chojnacki, the President of the redNet Property Group Board of Directors
"The future of luxurious apartments in Poland" more »

Case study

• LC Corp – Sky Tower
• Ghelamco – Qbik Woronicza
• BBI Development – Rezydencja Foksal

Presentation 2 - Marcin Gołębiowski, a redNet Consulting Real Estate Analyst
"A house or an apartment - the prospects of the housing market" more »

Presentation 3 - Elwira Bartuszek, a redNet Consulting Real Estate Analyst
"Holiday projects"more »

Case study

• Genfer Homes – Casa Marina
• Firmus - Dune

Presentation 4 - Robert Chojnacki, the President of the redNet Property Group Board of Directors
"Margarita - perła Karaibów"more »
"Where to invest during the stabilisation?" more »

Presentation 5 - Marcin Gołębiowski, a redNet Consulting Real Estate Analyst
"How to invest in luxury apartments
- the art of choosing underestimated projects" more »

Presentation 6 - Robert Chojnacki, the President of the redNet Property Group Board of Directors
"Purchase done, so what is next - active management of the real estate portfolio" more »
"Active management of the real estate portfolio" more »

FULL VERSION OF THE REPORTS

In order to make the full version of the three reports available to you, please contact:

• The report - "The future of luxury apartments in Poland"

Celina Grabowska
redNet Consulting Real Estate Analyst
phone: +48 22 318 72 77
e-mail:

• The report - "A house or an apartment - the prospects of the housing market"

Marcin Gołębiowski
redNet Consulting Real Estate Analyst
phone: +48 22 318 72 66
e-mail:

• "Holiday projects"

Elwira Bartuszek
redNet Consulting Real Estate Analyst
phone: +48 22 318 72 78
e-mail:

See also

• tabelaofert.pl
• luksusowemieszkania.pl
• apartamentywakacyjne.pl