New housing projects in Warsaw

2010-09-03

Property developers have recently launched many new housing projects in Warsaw and keenly buy land for new projects in Poland's capital, Zycie Warszawy reported.
Marvipol is about to buy a 1.2 ha plot of land at Powazkowska Street, while Veolia Transport Polska intends to buy 1.14 ha land for PLN 20m (€5m). Dom Development has recently bought land plots at Hery Street and Jana Ostroga Street (Wola district) in transactions worth PLN 50m (€12.7m), while J.W. Construction is negotiating the purchase of land property where the company can potentially build a few thousand flats (Wola). Ronson Development is planning five new projects, including three in Warsaw and two in direct vicinity of the capital.
Funds for new projects are secured not only through bank loans but developers also raise capital through issues of shares (e.g. Robyg plans a stock exchange debut) or bonds (Marvipol). In most cases, developers are not concerned about the impact of the T-recommendation, hoping that banks will soon find ways to deal with the new, more restrictive regulations. In the opinion of property developers, some financial institutions have started earlier to apply stricter regulations concerning mortgage loans and the new provisions introduced by way of the T-recommendation will not have a major influence on the housing market.