2021 is behind us and it’s time for a summary. We already know that this was a record year when it comes to the premium real estate market.
Joanna Czapska: 2021 was a big surprise for us, it rewarded us with a difficult 2020.
Daniel Zdrojowy: We have to admit that 2021 was favorable for the real estate market, I mean the buying trend. But for both transactions and customers as in previous years it took an effort to succeed.
What new challenges has Partners International had to face in 2021?
J.Cz.: The sale of deluxe properties remained smooth while in the “popular +” market with increased interest in the offer, owners often wondered whether to carry out the process themselves. So we faced a new challenge: we had to convince our clients that working with an agency can maximize the price of the property and make the transaction faster, more efficient and safer. Because we work primarily through exclusive contracts, we had to acquire new competencies.
D.Z.: The auctions that occurred in the past year were really challenging. In a situation where demand for a given property was growing, clients were making offers that were close to or over the starting amount and this encouraged owners to raise the price. There were also situations when suddenly another client popped up and then the pressure of competition was difficult both for the buying clients and for us – agents. We also experienced the so-called local fever, situations when houses in Mokotów with a budget of 5-6 million pln were literally snatched up by clients.
Why was 2021 so special? Where did the money come from on the Polish market?
J.Cz.: For years we have been observing an increase in the wealth of Polish society. In uncertain times with the risk of rising inflation, the purchase of an apartment, house or flat for further rental was the most interesting and the most appropriate investment.
D.Z.: The very important thing was security – some customers don’t feel comfortable keeping large amounts in banks for fear of changes, regulations or more expensive maintenance fees.
Can we talk about any specific trend in real estate sales in 2021?
J.Cz.: In the past year there was interest in properties from various segments. From ultra-luxury, which is an excellent security of capital, to houses and apartments, which are a chance to “escape” from smaller spaces in fear of further lockdowns, to apartments, as an investment for further rental.
It was also a year of record-breaking events that took place at Partners International Agency.
J.Cz.: Indeed, we made more than 470 transactions and again we exceeded the magic 50 thousand per m2. Also many properties that have been waiting for a buyer for several years found it just in the past year. I am thinking of the exceptional apartment in Fort Cze in Warsaw, which was sold at the offer price, the property in Bitwy pod Rokitną Street – a famous apartment of over 300 square meters in Żoliborz, which until recently was the home of one of Polish celebrities and a house in Mokotów from the 1920s, whose price skyrocketed to 11 million pln. In Tri-City we completed one of the largest transactions in the history of the Polish real estate market, which we can say about, because the new owner agreed to it – we sold the most expensive apartment in the Tri-City, a nearly 400-meter penthouse in the Sea Towers complex. This property has been waiting for a buyer for over 5 years.
We can also talk about the largest number of transactions above PLN 10 million in the history of the agency.
All these successes have certainly translated into the need to grow the company?
J.Cz..: Partners International development process has been going on for almost 3 years. And fortunately the growth of the agency has taken place in past years, because with so many transactions, we didn’t have time for recruitment processes (smile). Because of our position, candidates have been approaching us on their own. Today, we have nearly 50 professionals on board.
D.Z.: In 2021 our brand became so strong that we were joined by people known on the market, such as Iza Miks-Kożuchowska – Training Director or Jakub Zarzecki, who took the position of Head of Partners International Branch in Tri-City. Our brand has attracted many well-known names in the industry, including these two, known for their professionalism and experience.
The Tri-City branch of Partners International is also having its moment.
J.Cz.: The results achieved by Partners International in Tri-City exceeded our expectations assumed in the business plan. We are currently recruiting heavily for this division as we are seeing a very strong interest in seaside properties. Clients invest in second homes, penthouses close to the beach, as well as atmospheric apartments in old buildings, which are truly unique on the market.
In Partners International offer there are also properties in Portugal and Spain. How did this market segment develop last year?
J.Cz: We get most requests for houses and apartments in safe, so-called “self-service” developments, for example, managed by hotels. These are properties near the ocean or by golf courses where clients want to spend part of the year because of the warm climate and during the other months it’s a great rental investment. The interest is mostly in properties priced around one million euros, but we also have clients buying premium properties in Portugal in the range of 3-5 million euros.
What were the most interesting things that Partners International Agency had to deal with?
D.Z.: We did a lot of interesting high-budget deals in 2021. We were able to sell homes that were a real challenge. I’m referring to hard to sell properties where the agent has to give a lot more of themselves than usual.
J.Cz.: It was a year in which we also had to learn a lot and gain new competences. New structures and procedures had to be put in place so that, with such a high volume of transactions, our customers could be guaranteed a level of service. That’s why a dedicated team was created to support sales and agents. For me, as the founder of the agency, the highest quality of service is a priority.
What is the measure of agency success?
J.Cz.: What’s important to me are both the clients and the team, their satisfaction from being part of the community we create. It’s shared values and a warm family atmosphere. We rely on each other and together we achieve our goals, which is confirmed by the company’s financial results and numerous awards.
What is the mission of the company you run so successfully?
J.Cz.: With such an intensive development of the agency, when the company consists of almost 50 people, commitment, ethics, empathy and quality still have to be our distinctive features. Taking care of that, every recruitment that we do is based first and foremost on verifying that the new employee’s values are consistent with ours.
Why invest in premium real estate in uncertain, challenging times?
J.Cz.: Premium real estate has always been the safest investment of capital. They are not susceptible to temporary fluctuations in the economy and are an excellent alternative for those looking for a safe investment. As you know, the stock market in times of pandemic does not give a guarantee of profits, especially since there are many circumstances whose consequences we are not able to predict. Demand for good real estate is also not diminishing because it brings in a steady monthly income in addition to securing capital. That’s what gold doesn’t give.
D.Z.: In the past year we have seen a strengthening of the trend, which is collecting real estate.
J.Cz.: Poles are getting richer. We can even talk about the fashion of owning unique, amazing properties. Most of our clients have several of these. They also like to talk about their homes, apartments or penthouses. They brag about what addresses they’ve been able to “hunt down,” which confirms that they’re extremely knowledgeable and the best locations excite them just like they do us.
What will 2022 bring in the real estate industry?
J.Cz.: Today we are observing a phenomenon that many of us did not expect. The market lacks housing, not customers. I think that in 2022 the prices of the most luxurious properties may increase slightly, while in the “popular +” market I do not foresee much change. However, rising interest rates and less available credits may result in less buying momentum in this segment.
D.Z.: Analysts were talking about a dozen to tens of percent increase in real estate prices in 2021, depending on location and market segment. In my opinion not much will change in 2022. This will be another year with no shortage of customers interested in buying real estate. For those who invest there is still no competition in the form of even a few percent deposits. This will be the year of real estate.
What is worth investing in in 2022?
J.Cz.: I still recommend tenement houses in good locations. Especially in Warsaw they are very limited and there are more and more people willing to live in an apartment with history, high vaulted ceilings and extraordinary stucco.
D.Z.: I encourage you to buy properties in good locations. You will never lose on such a transaction.