Echo Investment sold 718 apartments in three quarters of 2018, and handed over 396 to clients. Throughout the year, the company is going to conclude preliminary agreements for the sale of 1,100 premises and hand over keys to 1,000 apartments.
The residential primary market benefits from generally favourable economic conditions: rising wages, declining unemployment and low interest rates. Investors are also encouraged by the lease yield, which is higher than bank deposit rates. For this reason, among others, prices of new apartments are rising.
“We have adapted the sales strategy to the current market conditions: high demand, quick sale and rising prices. According to the new approach, c.a. 20 percent of premises should still be on offer when a project ends. Our experience suggests that the margin on ready apartments is higher, because clients are able to see premises inside before the transaction and almost immediately move in,” explains Nicklas Lindberg, CEO of Echo Investment.
Echo Investment complements the list of investments in progress on an ongoing basis. In the first nine months of the year, the Company incorporated new projects in Kraków, Poznań and Warsaw into its offer. In the coming weeks, further investments will join the list, also in Warsaw, as well as in Łódź and Wrocław.
“Our competitive advantage is the fact that we create city destination places where the residents can comfortably live, work and have a good time. Simultaneously, in respond to current market trends, we try to take care of comfort of our clients by designing and introducing new functionalities that correspond to new social needs and habits. One of such solutions is the Tahoma smart apartment system, thanks to which the residents will be able to control temperature, lighting or security using a smartphone. It has been specially designed for Echo and is our standard for every apartment. In three years we are going to offer our clients 4,500 smart apartments. This corresponds to the fact that more and more our clients are so-called millennials, keen on new technologies, in need of freedom and comfort and appreciating city, active lifestyle,” adds Waldemar Olbryk, Board Member of Echo Investment responsible for the residential sector.
Similarly as in 2017, the vast majority of this year’s handovers will take place in the second half of the year. In the first three quarters, the Company obtained the occupancy permit for Dom pod Wilgą II and Apartamenty GO in Cracow, Osiedle Jarzębinowe IV in Łódź, Park Sowińskiego IV and Osiedle Jaśminowe III in Poznań. In total, there are 546 apartments. Soon our customer service department will be handing over premises in subsequent projects, including in the first building of Browary Warszawskie or Osiedle Perspektywa I in Poznań.
Savills Investment Management (Savills IM), the international real estate investment manager, transacted more than €3.6 billion globally in private real estate equity transactions in 2022 including c. €3.1 billion...