Deloitte carried out the biggest package transaction on the market of flats for rent
175 apartments in the Pacific Residence in Warsaw's Powiśle found a new owner
Warsaw, 5 March 2019
One of the largest packet apartment sales transactions in recent years in terms of value and volume was conducted on the Warsaw real estate market. 175 apartments for rent in the Pacific Residence building in Powiśle were bought by a foreign institutional investor. The transaction was prepared and executed on the seller's side by the Deloitte Real Estate Advisory Team.
The Pacific Residence sale agreement was concluded in the last days of January this year. "Until now, there have been practically no comparable transactions on the Polish market. So far, large transactions were concluded for entire residential buildings, often bought even before the building was commissioned. Therefore, we were dealing with a really new investment product from the perspective of preparation of the sales and marketing approach." – says Dominik Stojek, Director in the Real Estate Advisory Team at Deloitte.
The Pacific Residence is an apartment building located in one of the most prestigious districts in Warsaw, i.e. in Powiśle. The building is perfectly located, just 15 minutes walk from the Old Town and 2 km from the business center of Warsaw. – In addition to the location, the availability of such a large package of apartments already commissioned was of great importance. The packet transactions market will surely continue to develop, but its most serious barrier may be the lack of large apartment packages available on the spot. Therefore, when searching for new investment products, we talk with housing developers on behalf of our clients at the stage of preparation for construction.”– says Magdalena Topolska-Ziemak, Manager in the Real Estate Advisory Team at Deloitte.
As shown by the last two editions of the Deloitte Property Index 2017 and 2018, the apartment rental market in Warsaw is constantly growing. The capital city is in this respect the most attractive of all analyzed metropolises in Central Europe – in 2017 an average of EUR 14.8 per sq m had to be paid to rent a flat. A year earlier, Deloitte experts calculated the average annual profit earned from renting a flat. It turned out then that Polish cities were very favorable in this aspect. Net profit (ratio of annual rental income less costs of use to the total cost of purchase and adaptation of housing) in Warsaw in 2016 amounted to an average of 6%.
Experts also noted an increase in interest in renting apartments of a higher standard and in attractive locations, which may involve access to capital, the ease of cross-border investments, as well as in the case of some European capitals with the movement of highly qualified staff.