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The Warsaw Voice » Real Estate » February 18, 2009
The Real Estate Voice
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Luxury Still In Demand
February 18, 2009   
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While plummeting stock exchange indices around the world are a sign of economic slowdown, developers of exclusive real estate in Poland are doing well. A time of crisis is the best time to invest in luxury.

Despite the financial turmoil, some branches need not fear the crisis. One of them is the market for exclusive real estate, as it is one of the most stable segments of the real estate market.

"Exclusive residences are designed to keep their value and increase it, and so investing money in them is worthwhile when global markets are swept by a sense of uncertainty," said Elżbieta Skurzyńska, sales director at TS Invest. The company is building two exclusive complexes in Pomerania province, called Tesoro Ivory Residences and Sierra Ivory Apartments.

Property of this kind usually appeals to wealthy people who, if they feel the crisis, are not affected to the extent that they stop pondering prudent investment. "In the luxury apartment segment, supply is still lower than demand, which prevents interest in such apartments from declining even in a time of crisis," says Michał Abramczyk, a real estate consultant at Noble Bank.

Admittedly, the high exchange rate of the Swiss frank and more restrictive lending policies at banks have diminished the absorption capacity of the market for luxury properties, but the market is still far from collapse. After all, a majority of potential buyers of exclusive apartments do not even need to apply for bank loans and even when they do, they have no difficulties being granted one.

However, developers face problems as they seek to obtain credit to continue projects they have started. That is why it is wise to invest in real estate that is completed or has reliable guarantees regarding completion deadlines.

"Projects which TS Invest currently has under construction are over 90 percent funded from the company's own resources," said Hanna Siek-Zagórska, a member of the management board of TS Invest. "While other developers are struggling to obtain new loans for projects they are planning, TS Invest is calmly proceeding with its earlier plans."
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