Housing price bubble is a myth

I do not agree that we have a price bubble. Warsaw is one of the cheapest European capitals in terms of housing prices,’ believes Danilo Djurović, president of Monting Development, a company that bought a plot of land in Ursynów for PLN 82.2 million.

The housing market is changing, not only in terms of prices or demand, but also in terms of customer expectations.
Flat buyers are looking for solid investments, rather than a band-aid approach focused solely on maximising PUM.
At the moment, the housing market is dominated by cash customers, which proves that flats are still an attractive capital investment.

A plot of land left over from the planned but unrealised Fortepian shopping centre in Warsaw’s Ursynów district on Cynamonowa Street was bought a year ago by Monting Development. The starting price of the land, comprising approximately 4,700 sq m, was PLN 40 million, but the developer won the auction, paying PLN 82.2 million. Situated near the Imielin metro station, the plot adjoins an area sold over a year ago on which the Multikino cinema is being demolished and is one of the most attractive locations in this district of the capital.

– We are planning to develop a new, comfortable investment at this location. We are currently developing a concept that I hope will meet the expectations of future residents and bring a new quality to this part of the city,’ describes Danilo Djurović, president of Monting Development.

The company is focusing on the Tricity and Warsaw.

There are no grounds for lowering flat prices

According to the president, sales of flats on the Polish market have stabilised. – However, I do not see any basis for a reduction of flat prices,’ he admits.

The costs of construction, prices of land, materials and financing of investments are too high for developers to afford significant reductions, especially in large cities such as Gdańsk, Warsaw, Kraków or Wrocław.

‘I often hear that we are dealing with a price bubble. I disagree with this. Warsaw is still one of the cheapest European capitals in terms of housing prices. I expect that next year, with the expected reduction in interest rates, the demand for flats will increase,’ predicts Danilo Djurović, president of Monting Development.’

Now is the time to focus on quality

The president of Monting Development adds that in Poland it is difficult to find as safe a form of investment as buying real estate.

– At the moment, cash customers dominate, which proves that flats are still an attractive capital investment. The stabilisation we see in the market is for me a natural stage of development. In any business it is needed, and the property market – despite the turbulence of recent years – is able to regulate itself. Now is the time to focus on quality and invest with an eye to the future,’ Danilo Djurović emphasises.

Especially as the market is changing, not only in terms of prices or demand, but also in terms of customer expectations.

– Buyers are increasingly aware, they expect solid, polished developments, not a band-aid approach focused solely on maximising PUM, explains the CEO.

A developer’s dream: flats in a park

In response to this trend, the developer has set its sights on quality and sustainability in its Gdansk project, Oxygen Park.

‘I would like people in Poland, like in many European cities, to be able to feel like they are living in a park when they leave their homes,’ explains Danilo Djurović, president of Monting Development.’

– We designed the estate with the residents’ privacy and comfort in mind. Customers appreciated the longer distances between buildings, advanced infrastructure and innovative ecological solutions,’ describes Danilo Djurović.

The developer planted 400 trees and created: relaxation zones, playgrounds, a fountain, an outdoor gym and a dog run.

– I would like people in Poland, as in many European cities, to be able to feel like they are in a park when they leave their homes. Customers have noticed the difference and are recommending our estate to friends, which reassures me that quality will always defend itself,’ admits Danilo Djurović, CEO of Monting Development.