HAMBURG (dpa-AFX) - The Hamburg-based residential real estate group TAG Immobilien wants to continue to focus more strongly on the Polish residential real estate market. "Business in Poland is going very well. We want to continue growing there," co-CEO Martin Thiel told the financial news agency dpa-AFX. The rental business in Poland is a growth business for the group. In the neighboring country, the group not only rents out apartments, but also builds them itself, unlike in Germany.
In Poland, the construction costs for buildings of the same quality are significantly lower than in Germany, said Thiel. The company can build there for €2,000 per square meter. Depending on the location, an additional €300 to €500 per square meter is added for the land. The apartments are therefore affordable for the Polish population despite the higher interest rates compared to Germany. By way of comparison, according to Vonovia CEO Rolf Buch, the construction of new apartments in Germany costs over €5,000 per square meter.
TAG Immobilien will sell around 2,800 apartments in Poland this year, generating sales of around €400 million, said Thiel. As long as there is demand, the company can start building 2,000 to 2,500 new apartments every year. "We definitely have the financial strength to do so," the manager assured. In addition, the company will be looking for further acquisitions in the neighboring country. Shareholders would also support the expansion strategy in Poland.
Thiel explained the attractiveness of the Polish residential real estate market, noting that basic rents for new apartments in large cities such as Warsaw, Wrocław, and Gdańsk range between €15 and €20 per square meter. In addition, the Polish housing market is unregulated, similar to the UK. Rents were therefore able to rise more sharply than in Germany, where rent controls apply in many cities. In Germany, the average rent in the TAG real estate portfolio at the end of June was just under €6 per square meter./mne/stk
