Upswing on the housing market in Warsaw’s Wola continues. Launch of the last stage of the nearly sold-out City Link project
Ronson Development is introducing 107 units in City Link 5
Warsaw’s Wola district has joined the ranks of the Polish capital city’s most desirable districts as a place to live, and apartments in this location are getting sold at a record pace. According to REAS data, the most sought-after apartments are located in the vicinity of the second line of the Warsaw Metro. This observation has been confirmed by the huge commercial success of the City Link property development located near the “Płocka” Metro station which is currently under construction. Only 7% of units built as part of the completed 4 stages of Ronson Development’s City Link project remain available for purchase. On 24 September, the developer will launch sales of the 5th and final stage of the project with 107 units.
As REAS data demonstrate, apartments in Wola keep selling like fresh buns. Compared to other districts of Warsaw, the rate of sales of residential units on the primary market in this part of Poland’s capital city is high: on average, apartments find a buyer within 1.4 quarters of a year, whereas, for instance, in Ursynów it takes 2.8 quarters and in the downtown district of Śródmieście as much as 6.1 quarters.
Among the development projects that have achieved a high rate of sales is Ronson Development’s investment City Link. Out of a total of 772 units put up for sale as part of the completed 4 stages of the project, only slightly above 50 apartments (7% of the total) still remain available. The first 3 stages of the project have already been virtually sold out, and almost all units remaining for sale are in the 4th stage of City Link, which is scheduled to obtain an occupancy permit at the end of next year.
“City Link is our absolute bestseller and a true gem for investors. This property development is located at the junction of Wolska and Skierniewicka Streets and already offers excellent transport links with other parts of Warsaw, not to mention the fact that next year the residents will have the “Płocka” Metro station right outside their front door. Rondo Daszyńskiego, with a new business center of Warsaw, can be reached from City Link by foot. And it is equally close from City Link to greenery areas, stores and educational facilities, because Wola is a district with wonderful infrastructure for its residents. An additional advantage of City Link are attractive prices of its units: in the latest 5th stage they start from PLN 9,500 per square meter, whereas in other development projects in the so-called Near Wola the prices start from around PLN 12,000 to PLN 15,000 per square meter,” says Andrzej Gutowski, Sales and Marketing Director at Ronson Development.
Sales of City Link 5 will be launched on Monday 24 September and a total of 107 units will be available. The unit sizes start from 32 square meters, and 81 units are 1- or 2-room apartments.
The construction of the 5th stage of the City Link property development is scheduled to be completed in parallel with the 4th stage, that is in Q4 2019.
Demand stronger than supply
The enormous interest among customers in apartments located in Wola is largely due to the construction of the second line of the Warsaw Metro, which is currently reaching Rondo Daszyńskiego, and next year is expected to stretch out to more distant parts of the district. Data on apartment prices in Warsaw clearly indicate that the proximity of the Metro translates into higher prices. According to REAS calculations, at the end of Q2 2018 the average prices of apartments offered for sale in Wola stood at PLN 11,000 per square meter, whereas in the case of developments located in the immediate vicinity of a Metro station they were higher by as much as 44% at an average of PLN 15,800 per square meter.
Owing to the shrinking availability of land for residential development purposes in Wola, the number of apartments in this part of Warsaw is growing at a slower rate than the number of people willing to purchase them. This year, the number of units available for purchase dipped to the lowest level in several years. At the end of Q2 2018, approx. 1,700 units were available on the market, whereas in the last 7 years this number rarely declined below 2,000 apartments. At the end of Q3 2017, there were over 3,000 apartments available for purchase in Wola.
The average apartment prices in the district are growing at a very high rate. Back in 2015, when the construction of the 1st stage of City Link was launched, the prices stood at PLN 7,500 per square meter, to reach PLN 11,000 per square meter after a mere 3 years. And that is why apartments in this district are an excellent opportunity for investors. Also the prices of apartments in the City Link property development keep increasing with each subsequent stage. The prices of pre-sales units in City Link 4 (in May 2017) started from PLN 8,700 per square meter, whereas today the lowest price is PLN 9,500 per square meter.