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Real estate market
BBI Development NFI investment strategy indicates the real estate market as an area for developing investment competence and activity and a source for increasing the value of the enterprise.
Dividing the real estate market according to the stage of investment implementation (and associated sources / types of cash flow for investors), we distinguish two basic areas:
the development project market (where the investment is made at the stage from plot acquisition to the sale of premises, in the form of individual premises or an entire building. The sale price constitutes the investor’s source of cash flows),
the transaction/investment market (where the investment concerns a building (usually with leased premises) erected under a development project that preceded the transaction).
The market for development projects is characterised by a higher level of risk and expected rate of return.
BBI Development NFI – as a Development Fund Manager – concentrates its activity on this field of the real estate market.
In accordance with the criteria for the type of premises (created under a development project or subject to lease agreements) we divide the real estate market into several fields: the office market, the commercial market, the warehouse market, the residential market, hotel market, etc.
The Polish real estate market remains a relatively young one. Due to the specific nature of the economic transformation, the first full business cycle is only now coming to an end, and the market is beginning to enter a new period of growth. It is highly likely that, despite the considerably greater maturity of the market, the next business cycle will also be unnaturally long, which this time will be a result of the positive effects of European Union integration.
Currently, the Polish real estate market is considered an attractive area for investment. This is due both to European integration and the domestic situation, in particular the situation on the residential market (among the lowest supplies in Europe, combined with the increasing wealth of society and radical increase in the availability of mortgages), an excellent moment from the point of view of the business cycle, a fall in investment risk, the country strategic location and the emergence of a “service export” effect (service centres of large, global companies being located in Poland).
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