May is the time when the holiday real estate market is revived. Both built-up and undeveloped summer plots, as well as ready-made apartments, are very popular.
According to the estimates of the Metrohouse real estate chain, 3 percent. of all plots in the current market offer are marked as recreational plots. In reality, however, the offer is wider, because bidders sometimes classify plots built up with a summer house as simply houses, so those interested in buying should look both in the category of “plots” and “houses”.
According to experts, it is also not worth limiting yourself to the category of recreational plots, because many other plots of land put up for sale may fulfill recreational functions in the future.
Several customer groups
The peak of interest in recreational plots fell in the first months of the pandemic. Currently, according to Metrohouse brokers, several main groups of people looking for this type of property can be distinguished.
– The first are people who are simply looking for a place where they could spend their holidays. These are mainly families with children. The second group consists of entrepreneurs with a ready idea for a business in the field of tourism. Yet another group are investors looking for long-term investments, and according to them, the purchase of a plot of land near tourist attractions is the right choice, enumerated the coordinator of the Metrohouse office in Olsztyn, Ewelina Szymańska.
She added that many people buy recreational plots to gain access to attractions such as lakes, rivers, forests, nearby hiking trails. – Most often, customers are looking for plots with access to lake shorelines or with close proximity to water reservoirs. Plots with access to infrastructure such as utilities, roads, shops and other services are welcome. The exceptions are investors who are able to buy a larger area of land, divide it, equip it with utilities, and then resell ready-made recreational plots at a profit, Szymańska said.
The cheapest plots can be found in the offer of Family Allotment Gardens – their prices start from several thousand zlotys. – Such prices, however, are hard to find in the largest cities. Among the proposals, we will also find those costing well over PLN 200,000. Please note, however, that we do not purchase this type of plot of land. We can only obtain the right to lease it. However, if we care about full ownership of land in interesting natural circumstances, the market offer is full of plots below PLN 50,000. However, these are real estates that require significant investments, starting from tree pruning, fencing and utilities. The low price may actually be quite deceptive, Metrohouse experts assessed.
According to them, a summer plot with a small house costs at least PLN 50-70 thousand. zloty. At this price, you can find offers of houses on the market, which, although they require funding, can become real gems after modernization – they noted.
Most offers of summer plots with houses ready to move in start at 120-150 thousand. zloty. In principle, there is no upper price limit for plots with summer houses, as many of them fulfill the function of all-year-round, which is why the price is in no way inferior to “ordinary” houses, the experts said.
As they informed, the purchase of ready-made holiday apartments is also very popular. – The season from May is the time when the market of holiday properties on sale is experiencing a strong revival. Although apartments in resorts find buyers all year round, it is from May to the end of the holidays that customers’ interest is stronger, not only because of the weather, but also because they visit resorts more often as tourists, and thus see how many new investments are being built on by the sea or in the mountains – indicated an analyst from the portal Inwestycje w resorts Marlena Kosiura.
She added that vacation real estate is also profitable. – Recent years have brought a strong increase in the prices of such apartments. If someone bought an apartment a few years ago for PLN 7-8 thousand per square meter, today they can sell it for even PLN 20-25 thousand per square meter. As a result, they often earned more than 100 percent on the increase in the value of the premises. Same with rental income. Holiday apartments today – due to high purchase prices – bring profits comparable to the housing market at the level of 4-5 percent. Owners of premises purchased a few years ago at lower prices, taking into account the rising prices of accommodation, can earn up to 10-12 percent per year – noted Kosiura.
– An average 2-room apartment in a resort today brings its owners a profit of PLN 35-40,000 – added Kosiura, noting that it is worked out in a shorter period than in an apartment, because holiday properties work mainly in the peak season: during holidays, holidays , Christmas and New Year’s Eve.
The purchase of recreational plots is mainly financed in cash, as is the case with condo hotels, experts said.
Main photo source: Shutterstock