Analysis of investment opportunities on the Polish real estate market

A large player on the real estate market originating from the Nordic countries wanted to learn about the investment potential of Polish cities with emphasis on the rental market.

CIVITTA experts carried out complex analyses, which aimed at identifying the most attractive cities for investor and recognizing the potential of new solutions that do not exist on the Polish market yet.

International expansion by introducing modern solutions on the real estate market

After gaining a high market position in the Nordic countries, the developer decided to explore investment opportunities on the Polish market. Due to the specific nature of the real estate market and the target segment that the client was interested in, the research was conducted at the level of the largest cities in the country (together with their surroundings forming a metropolitan area).

The CIVITTA analysts' task was to find answers to several key questions:

• Which cities present the highest investment attractiveness and why?
• What is the supply situation, with focus on the rental market?
• What aspects of the residential offer are most important for potential clients?
• Is the Polish market ready for modern real estate solutions, such as PBSA (purpose-built student accommodation) or co-living?
• What is the competitive environment on the real estate market?

The answers to these questions allowed to formulate recommendations concerning the most promising locations and types of investments.

A multi-level approach to answering complex questions regarding investment options

CIVITTA's work has been divided into three main stages.

1. First, a narrow group of the most attractive cities had to be identified. For this purpose, CIVITTA created an investment attractiveness ranking of cities in Poland taking into account many dimensions such as demographic situation, economic development, construction market, education, tourist attractiveness and current situation on the real estate market. The ranking was based on statistical data obtained by CIVITTA. In this way, a list of five most attractive cities for investments was prepared.
2. In the next stage of work, we analysed in detail the situation on the five selected local markets. The task required a thorough knowledge of both sides of the market: supply and demand. Emphasis was put on the rental market. To examine the supply, in-depth secondary data analyses were carried out (using market reports and statistical data, online portals with offers from the real estate market, publications of companies and associations operating on the market). CIVITTA collected, among other, information on the offer available on the market (number of apartments, their type, prices, specificity of the investment, including the occurrence of modern investments), main competitors and examples of investment success stories from recent years. An in-depth analysis of the demand side was conducted based on quantitative research with current tenants in five selected cities. Thanks to this, CIVITTA gained knowledge about the needs and preferences of potential customers. The most attractive customer segments were identified.
3. The last stage of work included conducting a qualitative study (focus groups) with the most attractive tenant segments from the client's perspective. The goal of this stage was to develop recommendations for the proper targeting and positioning of the offer, including an in-depth understanding of target group's expectations and preferences, as well as the process of choosing an apartment (selection factors, search methods, etc.), communication channels and the most relevant marketing messages.

An objective picture of the residential rental market in Poland

Thanks to the conducted research, CIVITTA could objectively present the investment attractiveness of Polish cities. The analyses carried out by CIVITTA allowed to formulate conclusions and recommendations concerning entering the rental market. Thanks to CIVITTA's work, the client was able to find out what the potential clients expect as well as which market niches are not yet filled and give the best opportunities for success for the investor. In the course of the research, it was possible to identify both common features of examined locations and those areas where Polish cities are diverse. CIVITTA's approach also helped to identify the main opportunities and potential risks of entering the Polish market.

The key to success in a new market is to know its specifics based on hard data. Transferring experience from the home market to other geographical areas may prove to be deceptive. Data-based analyses are necessary. CIVITTA's international team of analysts and researchers understand the needs of companies interested in international expansion, including those related to launching new products on the market.

Contact us if you plan to expand into new markets. CIVITTA specialists will help you develop the best go-to-market strategy!