Land in Warsaw for multi-family housing development in 2019

Land in Warsaw for multi-family housing development: a summary for 2019

In 2019, the average price of land for multi-family housing development in Warsaw was PLN 2,606 per sq. m. In UFA (usable floor area) terms, property developers paid PLN 1,609 per sq. m. Twenty-five percent of the land deals were conditional upon obtaining regular planning permission.

“This means that there is a supply of land on the market, but you need to take a long-term approach when looking for properties,” Daniel Radkiewicz commented.

In fifty percent of the deals, the UFA was below 3,000 sq. m. The conclusion is that small projects are more popular, as they deliver return on investment within shorter periods and they are less capital intensive.

In UFA terms, for completed projects, the cost of land was the lowest in the Rembertów and Białołęka districts of Warsaw and the highest in the Wola and Śródmieście districts of the capital.

The largest number, or 49 percent, of plots sold in Warsaw in 2019 were properties covered by local zoning plans. This was followed by 25 percent of properties with regular planning permission, 17 percent with outline planning permission and 9 percent of properties covered by local land use plans.

The total area of land sold in Warsaw in 2019 was nearly 80 hectares. This included 28 hectares in the central areas of the city (the districts of Śródmieście, Mokotów, Ochota, Wola, Żoliborz, Praga-Północ and Praga-Południe), or 38 percent of the total figure.

In the areas outside the centre of Warsaw (the districts of Ursynów, Wilanów, Wawer, Wesoła, Rembertów, Targówek, Białołęka, Bielany, Bemowo, Ursus and Włochy), a total of 52 hectares (or 65 percent of all the land sold) changed hands. In 2019, the average cost in UFA terms  in the centre of the city was PLN 2,383 per sq. m., exceeding the average price in Warsaw by 49 percent, with PLN 4,662 per sq. m. of land, which was 83 percent above the average for the city. Outside the centre of the city, the average cost in UFA terms was PLN 1,075 per sq. m., i.e. 33 percent below the average figure, with PLN 1,165 per sq. m. of land, which was 58 percent below the average for Warsaw.