Summer apartment: in Kołobrzeg, Krynica-Zdrój or Florida

Inflation is going crazy. Some investors flee the real estate market with savings, but in resorts. In the portal RynekPierwotny.pl we find more than 2.8 thousand. holiday apartments in 60 investments. – It is about ten percent less than two years ago during the pandemic. The vast majority are located on the Baltic Sea – says Jarosław Jędrzyński, expert of the RynekPierwotny.pl portal.

The prices of holiday apartments range from 10,000. up to 35 thousand PLN per m² The cost of a micro-apartment of several meters starts from PLN 250-300 thousand. zloty. If you choose 25-30 m², you should have at least 400,000 m². zloty. Larger buildings, several tens of meters high, cost from PLN 500,000. to more than 1 million PLN, the most expensive more than 2 million PLN.

Not just rental

According to Jarosław Jędrzyński, holiday apartments are among the most lucrative investments, provided they are carefully selected. Random investing can turn out to be a costly mistake. The investor should pay attention to the location and the ratio of ownership standard to price.

– It is also important whether it is a second home (for own needs) or an investment aimed at making a profit – explains Jarosław Jędrzyński. – In the second case, you should take into account that the holiday season in Poland is very short, it lasts only two months. The largest and relatively certain gains are therefore made by investing in attractively furnished condo hotels (swimming pools, gym, spa, conference facilities, restaurants) in famous resorts frequented by tourists all year round.

In the case of condo hotels, the profitability is sometimes 8%. annual. This is how much an investor who buys a property in such a facility can earn. – However, it is safer to assume lower profits: 5-6 percent. The minimum period of return on investment is about 15 years – estimates Jarosław Jędrzyński.

He adds that a holiday apartment in an attractive, forward-looking location, in an interesting facility, will not only generate a rental profit, but also an appreciation over time.

Karolina Kaim, president of Sunshine by High Level, notes that by investing in condo hotels, we are investing more in the hotel market than in real estate, which has been brutally demonstrated by the pandemic. The lack of customers created many problems for developers and operators: lack of influence, nervous negotiations with customers, delays in deadlines. But the best seaside condo hotels did very well, fulfilled all their commitments.

Karolina Kaim advises you to choose a reliable partner who has an interesting holiday offer for the customer. – Because it will be this customer and his willingness to spend time in our property, the source of profit. If the offer does not contain an element of guaranteed profit (eg 8%) or profit sharing, the important thing is whether we like it – says Karolina Kaim.

The conditions of cooperation must also be carefully analysed. Condo hotels offer investors around 7-8 percent. return, but you don’t always get that much. It happens, for example, a gradual departure from the promised level of the annual return or the exclusion of expenses for finishing and furnishing the premises from the interest calculation. It’s also worth wondering who buys it from us, if we want to sell it. As Karolina Kaim points out, property that cannot be sold is not an investment, but an expensive trap. A good investment is one that you can cash in relatively quickly and get your capital back.

The CEO of Sunshine by High Level has no doubts that any investment that protects capital from high inflation is good. The main thing is to protect your money, and only secondarily – to earn. Unfortunately, there is now more and more talk about reducing losses.

– In the very hot Warsaw market, apartment prices have doubled in ten years, amounting to 10%. increase in value every year. It is true that it can be difficult to suppress a ten percent inflation with growth alone, but it is always better to lose a little less than more and make up for this loss with rental income – explains Karolina Kaim.

First and second hand

– Despite the geopolitical situation and inflation, the demand for holiday real estate is growing – estimates Julian Dzierżanowski of Freedom Nieruchomości Elbląg. – The return grows from year to year. Short-term vacation rentals are often more profitable than traditional city rentals. Tourists come for a period of not less than a few days, there is no need for cleaning every day, there are no problems with eviction. And the real estate can be placed in the management of the company.

When choosing an apartment in a developer standard, you need to consider the cost of at least 12,000. PLN per m² – Second-hand apartments do not differ significantly from developers’ offers. The return is 7-10 percent. annual. A simple calculation shows that the investment can pay for itself after 10-15 years – estimates Julian Dzierżanowski.

Anna Snopek of Freedom Nieruchomości Mierzeja notes that demand for vacation properties has declined somewhat recently, although they are mostly bought for cash. Prices are rising, among other things, because of the more expensive building materials. As a result, it takes longer for the investment to pay for itself.

As the expert admits, there are still many people who are willing. Coastal investments include: customers from central Poland. They combine rental with their own rest outside the holiday period.

– Due to the construction of roads, coastal real estate is often treated as a second home. They have proven to be very successful during a pandemic and work remotely – notes Anna Snopek.

New suggestions

The offer includes other objects. The sale of apartments from the third phase of the estate on Wyspa Solna in Kołobrzeg is launched by the operator Vacation Investments. Prices from 9.7 thousand. PLN per m² The rental service is provided by Vacation Rental.

– Interest in Wyspa Solna’s investment is growing. Some buyers are people who bought apartments earlier – says Marcin Liberski of Vacation Investments.

Apartments are being built by Inpro on Ptasia Wyspa in Mikołajki. The owners and guests will use the infrastructure of Hotel Mikołajki Leisure & SPA, previously built by Inpro. The minimum prices for finished apartments are about 27 thousand. PLN per m²

In Krynica-Zdrój, near the ski station, Platan Group offers more than 200 rooms in the complex of ten Aries Residence apartment buildings. The top floors will have penthouses with panoramic terraces. Dozens of buildings will be equipped with saunas. There are also apartments with kitchenette. They will be finished to a five star standard. Prices start from 13.8 thousand. PLN per m² net.

A foreign paradise

It is also worth considering investing abroad. – Inflation in Europe is lower, the season is much longer, rental income will be in euros – says Karolina Kaim. – If we already have several investments, it is a good risk diversification, also in the currency. Each country has different formal and legal rules. Some locations are not as year-round as they seem. For example, they change dramatically in the off-season or attract groups of people we might not want around.

Prices on the primary market vary widely. – We buy a good quality apartment in Northern Cyprus for PLN 80,000. British pounds, in Portugal, in interesting projects, probably from 250 thousand. EUR, but in the Marbella area you should have more than EUR 1 million – says Karolina Kaim. – There is also a very fragmented and deep secondary market, as well as locations far from the popular one, where it is much cheaper. You can also consider buying a holiday apartment in Bulgaria or Georgia for 30-50 percent. prices in Northern Cyprus.

According to Karolina Kaim, we are increasingly daring to invest abroad. We choose directions with easy access, air connection. We love locations like Spain, Portugal, Italy, Mallorca, Madeira, Cyprus, as well as Bulgaria, Turkey and Georgia.

Michał Ćwierzyk, president of Vela Poland, also believes that a holiday home is one of the best investments. The world is rebuilding itself after the epidemic and the interest in short-term rentals is very high.

– Holiday real estate, mainly abroad, is also a diversification of the portfolio. Such investments protect capital and moreover we have a place for a vacation without having to plan it. We can move to our second home at any time – convinces President Ćwierzyk.

After the invasion of Ukraine, the trend to invest abroad accelerated. – The most popular among Polish investors is Spain, which is the most visited country in the world – says Michał Ćwierzyk. – In addition to culture, gastronomy, sun and monuments, it still offers affordable real estate prices. One can also mention Italy and Portugal. Interesting are the Balkan countries, led by Croatia. The main argument here is EU membership and the possibility of quick access by car.

Greece and Cyprus are also targeted by investors. In addition, there is recovery in markets such as Dubai and even the Caribbean and Florida.

Apartments in resorts will be profitable, but not all and not everywhere

You have to be very careful when buying a vacation rental. A place in a resort is not the same as a regular city apartment that you rent for a long time.

1 When it comes to real estate, especially vacation rentals, three things matter: location, location, and location. The place should attract with numerous attractions and extensive infrastructure (swimming pools, spas, saunas, gastronomy). A vacationer is unlikely to come to a beautiful apartment complex in the middle of nowhere.

2 Once we have chosen an apartment or a room in a condo hotel, we need to collect all available information about the developer and operator so that we can check their credibility. It is worth knowing what investments these companies have in their accounts, if there have been problems with the payout of profits. But the promise of very high profits should be worrisome.

3 When buying, consider the possibility of exiting the investment. More and more modern condo hotels are entering the market. Finding a buyer for a multi-year condo room can be a challenge. We need to prepare in advance for a longer wait time for a potential buyer.

4 If you invest abroad, you should check the applicable regulations in a particular country, including tax. We also add up all costs associated with the transaction. A safer solution is to buy a finished apartment.

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