How long will real estate investments pay off?

How long will real estate investments pay off?
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Does investing in real estate still pay off? How long will the bull market last? We have prepared a detailed analysis, which answers these questions.

Investing money in real estate market has been for years a very good way to invest your savings. Will this trend continue in the coming years? What is the current situation of the real estate market in Poland?

The beginning of a pandemic

At the beginning of 2020 the world was engulfed in chaos caused by the coronavirus pandemic, which has not yet been defeated. Many industries were severely affected by the epidemic and the lockdown that was introduced to slow down the development of the SARS-COV-2 disease

The real estate industry was also affected by uncertainty about the rate of growth and the many factors that could undermine this industry. Many experts predicted various scenarios, but in the end, the darkest ones did not come true. The real estate market withstood the onset of the epidemic. Housing prices did not fall dramatically. A little more influence on the development in this channel of economy had a ban on gathering and limitation of contacts

Because of this, those involved in renting apartments met with anxiety among those eager to come, view and decide to rent for a specified period of time in a new location without any worries. The media also did a lot of damage to the information hype by spreading fake news, which was not good for real estate investors.

Short-term outlook

According to people who are professionally involved in real estate investing, there are many indications that buying an apartment for rent will continue to be a good way to invest one’s savings and multiply them. Especially in a situation where interest rates have gone down significantly, so savings placed in a bank account will hardly bring any profit. There are also those who significantly lost during the pandemic

The crisis has hit the office sector, employee accommodation and short-term rentals the hardest. In the case of long-term rentals, there has been a change in strategy to retain existing tenants. A reduction in demand for market-rate housing has also been observed due to government-imposed restrictions

What’s next for the real estate market?

Investing in real estate still remains a very profitable method of investing capital even in such uncertain and tough times due to pandemic. People are moving their money into such instruments that give higher interest rates, but also security.

So-called tailor-made apartments, which can be rented out shortly after purchase without additional renovation, seem to be a very good investment. This results in a significant reduction of additional costs. In times of crisis, studio flats proved to be a good housing product, which still have a wide audience, especially among the younger part of the renting population

Forecast for the coming years

In 2021, there is still no end in sight to the pandemic that has been going on for over a year, yet properties in large cities and smaller towns continue to be built. So there are many indications that as long as people have extra capital, real estate investments will remain popular and trusted. During the beginning of the epidemic crisis, a sudden drop in housing prices was prevented.

Therefore, it can be suspected that after the pandemic, property prices will improve again, so the return on investment will be more apparent. The following years should be characterized by a gradual rebound. This may mean that at this moment there is the last chance to invest in an apartment and multiply the capital in the following years. It is also worth taking into account low interest rates, which in a real way will lower the installment of a loan taken to purchase real estate.

Investments will only be profitable as long as they are handled by people who can approach the subject responsibly and without undue emotion. Above all, it is important to carefully analyze the economy during the crisis, observe the real estate market in detail and respond appropriately to the economic and business situation in the country.


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