Conditions for the Growth of Developers’ Activity on the Example of Poland and France

Theoretical background: Developers’ activity shows strong spatial diversification. These differences can be observed both between individual countries and within them - between cities. This means that developers’ activity is affected by a number of diverse factors of a national and local nature, which is also confirmed by the literature on the subject. This is a particularly important conclusion for developers operating at an international level. They have to make decisions in which country, and then in which city, development projects will bring the best results.Purpose of the article: The aim of this article is to identify nationwide barriers to the growth of developers’ activity, especially those that are evident in periods of recession, as well as solutions that should be taken to facilitate the functioning of such entities in Poland.Research methods: To achieve this aim, the desk research method and comparative analysis were used. A country which, apart from Poland, has been analyzed is France.Main findings: The conducted research showed that the main nationwide barriers to the growth of developers’ activity are insufficient purchasing power of the population resulting from the lower wealth of the Polish society, different regulations regarding the protection of buyers of developer dwellings, a smaller level of government support for both the demand and supply side of developers’ activity. Especially, the last one barrier should be taken under consideration. In the near future, due to the cyclical nature of the real estate market, a drop in demand for dwellings should be expected. Therefore, aid instruments for developers should be introduced to avoid a wave of bankruptcy. They could consist of training enabling retraining of activities into commercial or increasing the involvement of these entities in the implementation of housing for rent for people with lower incomes.Theoretical background: Developers’ activity shows strong spatial diversification. These differences can be observed both between individual countries and within them - between cities. This means that developers’ activity is affected by a number of diverse factors of a national and local nature, which is also confirmed by the literature on the subject. This is a particularly important conclusion for developers operating at an international level. They have to make decisions in which country, and then in which city, development projects will bring the best results.Purpose of the article: The aim of this article is to identify nationwide barriers to the growth of developers’ activity, especially those that are evident in periods of recession, as well as solutions that should be taken to facilitate the functioning of such entities in Poland.Research methods: To achieve this aim, the desk research method and comparative analysis were used. A country which, apart from Poland, has been analyzed is France, which is also struggling with a housing deficit.Main findings: The conducted research showed that the main nationwide barriers to the growth of developers’ activity are insufficient purchasing power of the population resulting from the lower wealth of the Polish society, different regulations regarding the protection of buyers of developer dwellings, a smaller level of government support for both the demand and supply side of developers’ activity. Especially, the last one barrier should be taken under consideration. In the near future, due to the cyclical nature of the real estate market, a drop in demand for dwellings should be expected. Therefore, aid instruments for developers should be introduced to avoid a wave of bankruptcy. They could consist of training enabling retraining of activities into commercial or increasing the involvement of these entities in the implementation of housing for rent for people with lower incomes

Wpływ planowania przestrzennego na działalność deweloperską

The aim of the article is to examine the impact of spatial planning on development activity based on the example of selected cities of Poland. Descriptive analysis of the subject literature, available statistical data and information about development projects (collected by the author herself) shows a significant diversity in the area of cities covered by the plans and the number of investments implemented by developers. As a rule, developers are more willing to conduct projects in the place where local plans are in force, but there are also different cases, which may indicate a faulty communal policy in the field of planning, discouraging developers from undertaking investments in its area.Celem artykułu było zbadanie wpływu planowania przestrzennego na działalność deweloperską na przykładzie wybranych miast Polski. Analiza opisowa literatury przedmiotu, dostępnych danych statystycznych oraz informacji o przedsięwzięciach deweloperskich (samodzielnie zebranych przez autorkę) wykazała znaczne zróżnicowanie w powierzchni miast pokrytej planami oraz w liczbie realizowanych przez deweloperów inwestycji. Co do zasady deweloperzy chętniej prowadzą przedsięwzięcia w miejscu obowiązywania planów miejscowych, lecz zdarzają się też odmienne przypadki, co może wskazywać na błędną politykę gmin w zakresie planowania, zniechęcającą do prowadzenia na jej terenie inwestycji

Is the impact of COVID-19 on housing construction activity inside and outside a large city evident? The example of Łódź (Poland)

The coronavirus pandemic has influenced cities’ shape and future. Telecommuting, teleconferencing, telelearning and e-commerce are creating a new environment of human life. These new factors should be added to the existing problems of urbanisation that are urban sprawl and depopulation. The authors of the paper decided to examine the intensity and spatial distribution of residential construction activity and residential real-estate trade in one of the biggest Polish cities – Łódź – and neighbouring municipalities to answer the question of whether the pandemic has affected housing decisions taken by developers and buyers. Based on statistical data, attempts were made to observe new signs confirming the intensification or weakening of past trends. The research was based on desk research and comparative analysis

The Popularity of Single-Family Housing in Real Estate Development Activity in the Light of the Pandemic – the Case Study of Łódź

Theoretical background: The functioning of the entire housing market and the sale of developer dwellings depends on many factors. They are, e.g. economic and financial, institutional, environmental, cultural, and religious. Due to the complexity of the real estate market and the variety of factors that influence its functioning, the real estate market is characterized by high variability. Some external factors, especially those difficult to predict, may cause rapid changes in the size of this market. Epidemics can be such a factor. Recently, the COVID-19 pandemic has significantly impacted the functioning of many housing markets. Since we spent whole days at home with whole families, it soon turned out that the previous places of residence needed to be bigger, functional, and properly located. Therefore, in many places worldwide, the demand for single-family houses has increased, contributing to the growing sale of such developer projects. The pandemic, however, has passed, but its effects, along with the consequences of the war in Ukraine, also affect the standard of living of the population and real estate development activity, although it seems to be in a different way. Purpose of the article: In connection with the above, two research objectives have been set in this article: to determine the impact of the pandemic on real estate development activity in the Polish housing market and to analyze, on the example of Łódź, whether the pandemic contributed to changes in developers’ offers and level of sale, especially in the context of single-family investments. Research methods: In order to achieve the set goals, the desk research method was used. First, based on statistical data of the Local Data Bank situation on the primary residential real estate market was analyzed (in Łodź). Then, the number of investments implemented in Łódź, broken down into multi-family and single-family housing, was examined (based on data collected by the author from real estate portals and websites of individual developers). Concerning single-family housing, investment commencement, and completion dates were identified and finally, based on the starting dates, single-family investments were divided according to the level of sale. Main findings: The outbreak of the COVID-19 pandemic has “turned on its head” housing markets in many parts of the world. Overnight, entire households switched to remote work or learning, which was difficult to reconcile, especially in small dwellings. Difficulties in functioning partly prompted and partly forced to look for other, more suitable places to live. Because of that, developer projects concerning single-family houses sold very well during the pandemic. However, it seems that the increase in popularity (sale) of single-family investments offered by developers was temporary. The increase in interest rates resulted in a decrease in demand for large dwellings, which few people can afford anymore, and they are not an attractive investment for investors. So, developers have frozen capital, which, unfortunately, with the loans taken out, may, in the long run, lead to the risk of debt growth and bankruptcy of smaller enterprises

Local Factors Influencing The Increase In Development Activity In Selected Cities Of Poland

Development activity in Poland began to increase in the 1990's as a result of market-oriented reforms, with the process continuing to this day. The beginnings were, however, not easy due to, among others, the absence of many important legal regulations and the lack of commercial financing. The situation changed in the second half of the 1990's, positively affecting residential development activity. The years 2008 - 2009 were particularly relevant in the course of the studied trend as a sharp increase in the number of completed developer-built residential dwelling units was recorded at this time. After this period, a decline in the number of dwelling units completed by developers was recorded, which indicates its strong dependence on changes in the economic environment. Fluctuations in the number of dwelling units completed by developers were also visible before Poland's accession to the European Union. This means that the diversity of development activity is influenced by many factors

A Market Analysis in Development Activity. The Problem of the Availability of Statistical Data in European Countries

Development activity is primarily characterized by high capital intensity. Developers implementing a venture in the residential market make use of not only their own funds but also capital from potential buyers. Therefore, developers should carefully analyze the markets in which they intend to conduct their business activity. This particularly applies to developers operating on an international scale. Local developers often understand the market situation in a given area enough to be able to successfully assess whether their products will find buyers. Foreign developers, however, deciding in which country and subsequently, in which region, to start their business activity, should base their analysis on reliable statistical data concerning demand, supply, prices, and the absorption rate. The aim of the article is therefore to assess the availability of statistical data necessary for conducting a market analysis for the needs of development activity in individual countries of the European Union and the United Kingdom

Location tendencies in developer investments in the residential market in Łódź

One of the most critical decisions that every developer has to make is what location will be the best for his investment. This depends on different factors that change over the years. Therefore, the aim of the article is to identify and assess tendencies in the location of developers’ investments based on the example of the activity of Łódź developers. In the past, the share of investments on outskirts was more significant, which in the case of Łódź resulted from several reasons – mainly the small number of local plans, the abuse of planning decisions, and low land prices on the outskirts. Therefore, the current tendency of locating a significant part of investments in the city centre seems to be a very positive phenomenon. It reduces the costs of these investments and creates a more compact urban built-up area

Czynniki rozwoju działalności deweloperskiej na polskim rynku mieszkaniowym

Działalność deweloperska w Polsce rozwija się nieustannie od ponad 25 lat. Jakkolwiek początkowo okres transformacji ustrojowej nie był dla deweloperów sprzyjający, dziś zajmują oni drugie miejsce pod względem liczby mieszkań oddawanych do użytku. Działalność ta jest jednak silnie zróżnicowania pod względem terytorialnym, zarówno w ujęciu ponadnarodowym, jak i wewnątrz danego kraju. Można zatem powiedzieć, że na działalność deweloperską wpływa szereg różnorodnych czynników. Głównym celem rozprawy doktorskiej było więc określenie potencjalnych czynników rozwoju działalności deweloperskiej na polskim rynku mieszkaniowym oraz określenie gradacji ich ważności z wykorzystaniem m.in. narzędzi statystycznych i ekonometrycznych na przykładzie wybranych miast, wskazanie konsekwencji występowania różnic w tym zakresie oraz możliwości poprawy warunków funkcjonowania działalności deweloperskiej na badanym rynku. Przeprowadzone za pomocą metod ilościowych i jakościowych badania wykazały, że na działalność deweloperską wpływają czynniki o charakterze zarówno ogólnokrajowym i lokalnym, jak i te wynikające ze specyfiki nieruchomości czy samego dewelopera. Działalność ta powinna być zatem stymulowana poprzez wszystkie, opisane w rozprawie, jej uwarunkowania. Wymaga to świadomego zaangażowania zarówno rządu, jak i podmiotów samorządu terytorialnego, które powinny być żywotnie zainteresowane zarówno poprawą funkcjonowania rynku mieszkaniowego, jak i dynamiką oraz efektami działalności deweloperskiej. W przeciwnym razie warunki mieszkaniowe ludności w Polsce będą ulegały poprawie w tempie bardzo powolnym i daleko odbiegającym od oczekiwań społecznych