Development activity is primarily characterized by high capital intensity. Developers implementing a venture in the residential market make use of not only their own funds but also capital from potential buyers. Therefore, developers should carefully analyze the markets in which they intend to conduct their business activity. This particularly applies to developers operating on an international scale. Local developers often understand the market situation in a given area enough to be able to successfully assess whether their products will find buyers. Foreign developers, however, deciding in which country and subsequently, in which region, to start their business activity, should base their analysis on reliable statistical data concerning demand, supply, prices, and the absorption rate. The aim of the article is therefore to assess the availability of statistical data necessary for conducting a market analysis for the needs of development activity in individual countries of the European Union and the United Kingdom.
Residential development in Poland has gone through many changes over the last few decades. In the 1990s, housing cooperatives played a major role among investors in the residential market, whereas developers were only taking their first steps. Today the situation has reversed. In addition to private persons building homes for their own use, developers contribute the most to the supply of new housing. There are many factors that have led to this situation. It is noteworthy that many laws governing the real estate market, the construction market, the development of entrepreneurship, etc. have been either enacted or frequently amended over the last two decades, which may have significantly affected developers’ activities.
The article is an attempt to answer the question about whether and, if so, how strongly changes in the legal setting have influenced residential development activity in Poland.
Development activity in Poland began to increase in the 1990's as a result of market-oriented reforms, with the process continuing to this day. The beginnings were, however, not easy due to, among others, the absence of many important legal regulations and the lack of commercial financing. The situation changed in the second half of the 1990's, positively affecting residential development activity. The years 2008 - 2009 were particularly relevant in the course of the studied trend as a sharp increase in the number of completed developer-built residential dwelling units was recorded at this time. After this period, a decline in the number of dwelling units completed by developers was recorded, which indicates its strong dependence on changes in the economic environment. Fluctuations in the number of dwelling units completed by developers were also visible before Poland's accession to the European Union. This means that the diversity of development activity is influenced by many factors.
The available literature generally states that the growth of the real estate market depends on demand. Effective demand for real estate is understood as the number of people who are willing and financially able to buy or rent a particular kind of property at different prices, at a given time and in a given market. Therefore, it can be assumed that local factors have a particular impact on the growth of development activity. However, the question arises as to which of the many local factors are important to the growth of development activity and what factors can be used by local authorities to more effectively stimulate the growth of residential housing in their area.
The aim of the paper is to determine by means of econometric instruments the significance of the impact of individual local factors on development activity in the residential housing market in the largest cities of Poland.
Development activity, understood as an economic activity consisting of transforming a property so as to induce an increase in value, has been expanding in Poland since the early nineties of the twentieth century. However, in this country, it is an activity associated mainly with the profit which a developer can make from the sale or rental of the transformed property. In the West, however, non-profit development activity, providing mainly housing for rent for people with limited financial resources, has become increasingly popular. Under the current institutional conditions, the growth of this type of activity in Poland seems impossible. In this situation, Social Housing Associations could play a similar role, subject to the extension of the scope of their activities and funding opportunities. Therefore, it is reasonable to put forward the thesis that, in order to make the growth of social housing in Poland more dynamic, it is necessary to expand for the range of SHA activities as well as to initiate non - profit development activity based on the model of Western countries. The aim of the paper is to demonstrate the legitimacy of the presented thesis by analyzing the available literature, statistical data and case studies.
One of the most critical decisions that every developer has to make is what location will be the best for his investment. This depends on different factors that change over the years. Therefore, the aim of the article is to identify and assess tendencies in the location of developers’ investments based on the example of the activity of Łódź developers. In the past, the share of investments on outskirts was more significant, which in the case of Łódź resulted from several reasons – mainly the small number of local plans, the abuse of planning decisions, and low land prices on the outskirts. Therefore, the current tendency of locating a significant part of investments in the city centre seems to be a very positive phenomenon. It reduces the costs of these investments and creates a more compact urban built-up area.