Press review

The market of renting bungalows in mountains

Renting real property in towns located in Polish mountains is still perceived as a kind of niche market. According to Ewa Pytkowska from the redNet Investment company, many resorts offer a wide variety of accommodation, hence tourists have private lodgings, guesthouses or hotels at their disposal. However, more and more popular become private apartments, which are rented to tourists for the time of their holidays.

There is also a growing interest in real property in mountainous regions. In response to reported demand, many property developers prepare on the market their own projects. The most attractive locations, obviously apart from Zakopane, include Krynica Gorska, Wisla, Szczyrk and Karpacz. Overwhelming superiority of clients decide to purchase this kind of real property designed for investing purposes. They count on high revenues from rent and relatively quick repayment of invested money. In Poland there is also a fashion for possessing a second home, one of a holiday-type. It gives a chance to spend weekends and holidays there, and even settle in those places for the time of retirement. Mountain resorts have an advantage over spots located at the Baltic seaside – tourists’ season lasts there all year long. In the winter time mountains draw enthusiasts for skis and snowboard, whereas in summer and spring-autumn one can stroll along the picturesque trails there.

Is it worth to choose such an investment when the crisis is noted? Specialists from the Investor’s Club recommend to delay the decision concerning the purchase. In the nearest future there is a cutting of interest rate expected, which obviously will increase its attractiveness. Owing to lower interest rates, the interest installment is more profitable for buyers. Therefore, they can expect to get the repayment of the capital invested in shorter time. Moreover, when interest rates are high, repayment of the investments in property is often much lower than the interest rate of a deposit account. Currently , many clients also delay the decisions hoping for pricing promotions of property developers.

Annual profits possible to be gained through effective rental of the apartment in mountains reach even 40,000 PLN. Their amount depends on the location and the standard of the real property. The closer to the resort’s centre or its main promenade, the higher revenue the apartment can generate. It is worth to purchase a flat in the project, where guests have additional attractions at their disposal - board-rooms, swimming pool, gym or SPA & Wellness centre. Such an infrastructure makes the apartment more desired.

Taking into consideration prices reached by the real property in Polish resorts, as well as an economic slump on the market, analysts do not predict that the investments’ value will increase rapidly. In this respect real property in Slovak Tatra mountains seem much more attractive. In spots such as Tatrzanska Lomnica, Velka Raca or Oscadnica, prices of square meter start at about 6,000 PLN. Prices in the capital of Slovakia, Bratislava are comparative to those in Warsaw, hence in short time we can expect significant increase of values of real property in mountains. Additionally, in part of Slovak projects property developers guarantee stable revenues from rental. The administrator is obliged to pay to the owners a proper amount constituting profit from rent. For instance, in the Silver Resort project, annual guaranteed profit reaches 7,14%.

Possessing real property for rent in mountainous region is definitely a long-lasting investment. However, if one purchases attractively located apartment and provides it with white finishing, he or she can expect reasonable, regular profits from rent. It is worth to remember that simultaneously the owners receive a chance to spend holidays in their own apartment and to save money as they do not have to pay for accommodation.

2009-01-06

See also

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