Poland: What group of buyers is driving demand for new flats today

What is the current sales structure of new homes? What is the percentage of investment purchases and what is the group of customers who buy for own consumption? Have package purchases returned to the market? How have sales been affected by the 2% Secure Credit programme?. What is the structure of new flat sales today? What is the proportion of investment purchases and what is the group of customers who buy for their own needs? Have package purchases returned to the market? How have sales been affected by the 2% Secure Credit scheme? T

Angelika Kliś, board member of Atal:
The 2% Safe Credit programme has certainly improved the enthusiasm of people buying their first flats. However, in our case, among other things due to the diversity of the offer, it has slightly affected the percentage of total sales of the respective buying groups. This is more noticeable in cities where we have typically residential products, such as in Warsaw, where sales increased with the BK loan by 2 per cent.

Tomasz Kaleta, Sales Department Director, Develia S.A.:
The 2 per cent safe loan did not particularly change the structure of our sales. The programme has stimulated demand on the part of credit customers who, due to high interest rates, have struggled in recent quarters with low creditworthiness. At the same time as them, however, investment buyers also went shopping, who, fearing that the offer would run out and prices would rise, decided to buy a flat. Therefore, the percentages of transactions concluded by both these groups have not changed. Still, around 70 per cent of purchases are made for own housing needs and 30 per cent for investment purposes. These proportions result from the offer structure of our investments. In most of our projects, around 50 per cent are small, one- and two-room flats, and the other half are larger units. Investment customers mainly purchase the smallest properties, which sell the fastest. Location is important here; the percentage of investment customers is usually higher in projects located in city centres, where we have the possibility to design a larger number of small units. On the other hand, in peripheral locations, where multi-room flats are prevalent, the dominant group of buyers are those buying for their own needs.

Andrzej Gutowski, Vice-President, Sales Director, Ronson Development:
Our sales statistics show that currently almost 60 per cent of our customers use a mortgage and 40 per cent make purchases in the form of cash. At the same time, in the group of customers who use credit, as many as 70 per cent use the Safe Credit programme. Currently, we do not carry out package purchases.

Zuzanna Należyta, Commercial Director at Eco Classic:
The percentage of customers buying for their own needs is around 80 per cent. This is due to the fact that over the past year, when creditworthiness deteriorated significantly, customers looking for a home for their own needs were forced to hold off. Now that interest rates have been lowered, the way creditworthiness is calculated has been improved and the 2 per cent Secure Credit scheme has been introduced, homebuyers have returned to the market. The number of transactions with investment clients started to increase at the beginning of the year and has remained at a similar level. The increase in sales is due to customers using credit and buying flats mainly for their own needs.

Janusz Miller, sales and marketing director of Home Invest:
We have not observed that package purchases have now returned to the market to any significant extent as far as funds are concerned, but of course there are individual customers who buy several flats from us. However, it can be said with certainty that the 2% Secure Credit programme and the interest rate cuts have had a major impact on the structure of sales in the housing market. The reduction in interest rates and the reduction of the FSA's buffer in the context of calculating creditworthiness have made loans more accessible and affordable, which has encouraged both investors and homebuyers to purchase property. In addition, the 2% Secure Credit programme has influenced faster purchase decisions, as it offers favourable credit terms to those who meet certain criteria.

When it comes to the proportion of purchases, however, we are seeing a greater increase in purchases for own needs compared to investment purchases, which is influenced by the government programme.

Małgorzata Ostrowska, Director of the Marketing and Sales Division at J.W. Construction:
As far as people buying property for investment purposes are concerned, we have not noticed any significant changes in this group. Investors are active practically all the time. They are mainly people buying premises for cash, most willingly those with the possibility of deducting 23 per cent VAT. These purchases are favoured by the approaching end of the year, which speeds up the decision due to the desire to optimise tax. In our Warsaw investment at Pileckiego Street, investors purchasing investment flats can deduct VAT of up to PLN 150,000.

Joanna Chojecka, sales and marketing director for Warsaw and Wrocław at Robyg Group:
We see very strong interest from customers buying flats for their own use. Currently, more than 20 per cent of our clients in Warsaw are foreign clients, a large part of whom are from Ukraine and Belarus. There is already a need for around 300,000-350,000 flats for people from these countries. The proportion towards investment demand is quite stable, fluctuating around 50/50 per cent.

Dorota Gdaniec, Land Sales Specialist at Alter Investment S.A.:
Investors who want to buy more than one unit usually invest their own funds.
The more expensive the investment in a top, urban location, the greater the share of the investment client who wants to invest their capital well.

Piotr Ludwiński, Sales and Customer Service Director at Archicom:
Thanks to our consistency in introducing diversified flats, most of our investments now include units eligible for the 2% Safe Loan. We currently have several hundred such flats on offer. Diversification is the top priority in shaping our offer. It allows us to respond to the needs of a broad spectrum of potential buyers, as well as to build a universal and timeless portoflio, regardless of current trends or market conditions. Beneficiaries of the programme who qualify for preferential financing are just one of many groups of our customers.

Source: dompress.pl
Photo: Aleje Praskie - Develia