A gradual increase of demand for luxury goods has been registered in Poland for a few years. Luxury apartment projects enjoy more and more interest and an increasing number of developers opt for creating an offer for demanding clients. Echo Investment is currently carrying out a few luxury projects, which ideally fit in with the trend.

According to the data included in the KPMG report of 2013 "Luxury Goods Market in Poland" the primary and secondary luxury real estate market in Poland is worth approx. PLN 0.9 bln per year. If one adds the construction of residences according to individual designs to this the expenditure on luxury real estate in Poland, it would significantly exceed PLN 1 bln. According to REAS" 2013 data, the value of the primary market – of luxury apartments and residences amounts to approx. PLN 250-280 mln per year. It is estimated that the number will be gradually growing every year. The primary market in this sector is currently dominated by developers which build luxury apartments (80% value share) while the remaining part of the premium segment includes exclusive residences. The apartments are mostly built in Warsaw, Kraków, Poznań, Wrocław and TriCity. The primary market of residences is nearly four-times smaller and the average transaction prices are clearly lower than those of luxury apartments. It results from the fact that affluent people are eager to invest in luxury apartments but they prefer to build residences independently, according to individual designs. “The sales of luxury apartments maintain the upward trend because their purchase provides for a relatively small loss in case of a crisis,” comments Jakub Tamborowski, head of Echo Investment"s sales department in Kraków. Luxury apartments are characterized by attractive location, modern architecture, the quality of finishings and materials, attention to detail, conveniences for residents and services dedicated to the building. The layout is equally as important. Prestigious luxury apartment projects are usually small. It results from the fact that residents of such projects particularly appreciate peace and comfort. There is also a different approach among people who buy properties like that. Cities which are most saturated in terms of luxury project include Krakow. Developers opt from locating their projects in this city because of a lot of interest among potential residents, relatively low prices compared to the market of luxury apartments in e.g. Warsaw and the possibility of finding an attractive location for their project – along the Vistula Boulevards or in the city centre, relatively close the Market Square. This is the strategy implemented by the developer and investor Echo Investment. “Luxury apartments constitute a significant element of the firm"s offer. We expect that the trend will develop in the next few years and we are planning the construction of the next few projects in the premium sector,” comments Echo"s expert. One such project will be a modern complex of luxury apartments on a plot adjacent to the Dębnicki Park and the Vistula Boulevards, which will offer a view onto the most renowned historical buildings in Kraków – the Wawel Royal Castle, the Kościuszko Mound and the Norbertine Convent. The company prepared a number of conveniences for future residents, including a recreational area with alleys which gently transform into walking areas in the park. All the company"s projects are characterized by the top quality of the materials and finishings, modernity and attractive location. The main assumption is to provide future users with security and comfort. The project features the latest functional solutions and amenities: fitness, saunas, spacious car parks, monitoring and security service. The projects carried out by Echo Investment are appreciated by clients and real estate professionals, which is confirmed by: the "Golden Villas 2014" prize for the Hortus Apartments luxury project and the "Best Interior Design" prize for the Klimt House luxury apartment building in Warsaw, which was awarded during the CIJ Residential Awards 2012 gala. “Based on KPMG"s data, the growth trend on the luxury goods market is stable. It is a good sign for the development sector, which will be able to develop and offer more and more advanced projects in response to clients" growing demands,” sums Jakub Tamborowski. At the same time Echo"s representative emphasizes the good economic climate. “The market is very active today and prices are starting to grow slowly. We look into the future with optimism when analysing the current results,” adds Tamborowski.