Within the dynamic landscape of European real estate markets, the Polish residential sector stands at the forefront, navigating through a myriad of challenges including fluctuating prices, shifting demographics, urbanization, and evolving consumer preferences. As part of the ULI’s Poland Places + Spaces series held at the Fabryka Norblina Centre in Warsaw, a crucial discussion titled ‘Emerging Living Concepts’ shed light on the pressing issues within the residential domain.
During the event, stakeholders were immersed in illuminating discussions and presented with insightful analyses highlighting the profound transformations reshaping living formats in Poland. These changes have been significantly influenced by demographic shifts, environmental considerations, and a spectrum of contemporary challenges.
Kicking off the conference, Marcin Juszczyk, the chair of ULI Poland, set the stage by acknowledging the nascent stage of shared living markets in Poland. However, he underscored the notable statistic that 8 out of 20 asset classes garnering investor interest belong to various sub-segments of the residential market. With this context in mind, the discussion delved into exploring best practices, benchmarks, and emerging trends within these sub-segments.
The inaugural speaker, Thomas Beyerle, managing director of Catella Property Valuation GmbH and head of research for the Catella Group, provided valuable insights into the intricacies of the residential market landscape. His expertise illuminated the audience on key trends and market dynamics, setting the tone for a comprehensive exploration of the evolving living concepts in Poland’s housing market.
Exploring the Generational Divide: A Closer Look at the Housing Market Dynamics
The ongoing tug-of-war for living spaces among Baby Boomers and Generations Y and Z has become a defining feature of the contemporary housing landscape. Delving into the complexities of these generational dynamics, experts shed light on the profound implications shaping the housing market.
While acknowledging the nuances beyond mere stereotypes associated with each demographic group, the discussion underscored significant trends reshaping living preferences and patterns. One notable trend is the upward shift in the average age for first-time parenthood, hovering around 32 in Western societies. This phenomenon is often attributed to the inverse relationship between societal affluence and birth rates.
As Baby Boomers transition into retirement, a demographic shift ensues, leading to a disproportionate increase in elderly households compared to younger counterparts. Notably, in the largest 50 European cities, single-person households now surpass the 50 percent mark. This demographic transition, coupled with evolving lifestyle choices and work preferences among younger generations, significantly influences the current residential market dynamics.
However, amidst these shifts, a prevailing stereotype suggests that Generations Y and Z predominantly favor rental accommodations over homeownership. Contrary to this notion, it’s crucial to highlight the correlation between higher transaction activity and a greater proportion of rental apartments in certain countries. This raises pertinent questions for market participants regarding the future housing choices of younger generations, particularly as they transition into parenthood and potentially seek suburban living arrangements.
Conversely, for Baby Boomers, the empty nest phase often translates into residing in large, spacious houses that may exceed their current needs. This demographic cohort faces unique housing challenges as they navigate through the later stages of life, prompting considerations of downsizing and lifestyle adjustments.
In essence, the interplay between generational preferences, demographic shifts, and evolving societal norms continues to mold the housing market landscape. Understanding these dynamics is paramount for policymakers, developers, and investors alike as they navigate the intricacies of the ever-evolving real estate sector.
Navigating the Future: The Evolving Dynamics of the Residential Market
As generational preferences and demographic shifts continue to redefine the residential landscape, an intriguing question arises: will Baby Boomers opt to trade their suburban abodes for more compact inner-city apartments? This pivotal decision is poised to drive the trajectory of the residential market in the years to come, as highlighted by Thomas Beyerle.
Indeed, the ripple effects of such choices extend beyond mere housing preferences, exerting a significant influence on property prices. In our region, this trend manifests prominently, with house prices experiencing a steady upward trajectory. Beyerle’s insights shed light on the broader European context, revealing that the most attractive yields are concentrated in cities like Riga and Vilnius, boasting approximately 5.25 percent returns. Following closely are Kraków and Wrocław, offering a respectable 5 percent yield. Contrastingly, cities like Stockholm present a stark contrast, with yields as low as 1.2 percent.
Moreover, the sentiment among European real estate investors underscores the growing prominence of the residential sector. A staggering 78 percent of respondents in an annual survey comprising 250 European investors expressed strong focus on residential assets for the current year. This resounding endorsement positions residential properties as the primary investment avenue, surpassing other asset classes such as logistics/industrial (51 percent) and office spaces (40 percent).
In essence, the confluence of demographic dynamics, shifting preferences, and investment sentiments paints a dynamic picture of the residential market’s future trajectory. Navigating these evolving trends demands a nuanced understanding of market dynamics and a proactive approach to capitalizing on emerging opportunities in the ever-changing real estate landscape.
Exploring the Evolution of Coliving: A Comprehensive Analysis
Gui Perdrix, president of the global coliving association CoLiv and co-founder of the coliving incubator Art of Co, took center stage as the second speaker at the conference, offering invaluable insights into the multifaceted realm of coliving. Beginning with a succinct definition, Perdrix delineated coliving as more than just shared living arrangements but rather a communal lifestyle wherein two or more unrelated individuals cohabit a space, sharing communal resources such as kitchens and living areas. This concept encompasses a diverse array of living arrangements, spanning from student and senior accommodations to standard flat-sharing setups.
Central to the coliving ethos is the notion of an ‘urban lifestyle’ wherein housing transcends mere accommodation to become an immersive experience. Yet, Perdrix candidly acknowledged a dissonance between theoretical ideals and practical realities within the coliving landscape.
Crucially, coliving must be distinguished from serviced apartments, which lack communal spaces and fail to prioritize community engagement and urban lifestyle integration. Delving deeper into the spectrum of coliving options, Perdrix delineated various configurations, ranging from standard flats accommodating 4 to 6 individuals to expansive developments hosting upwards of 500 residents. These modern developments boast an extensive array of amenities, including coworking spaces, libraries, gyms, cinemas, and rooftop gardens, redefining the concept of residential living.
The exponential growth of coliving professionals and brands underscores the burgeoning popularity of this housing model, with a tenfold increase in professionals since 2017 and a surge from 120 brands in 2016 to over 1,700 in the past year alone.
Moreover, Perdrix highlighted the nuanced variations in coliving cultures across different cities and regions. While New York’s coliving scene is characterized by asset-light operators aiming for rapid expansion, Los Angeles embraces smaller, budget-friendly setups often featuring pod leasing. San Francisco, steeped in a history of communal living, adopts a grassroots approach to coliving. Conversely, Amsterdam, despite a populace eager to embrace coliving, faces regulatory hurdles hindering its widespread adoption.
In essence, Perdrix’s discourse unveiled the dynamic landscape of coliving, underscoring its transformative potential in redefining contemporary living paradigms while navigating through unique cultural and regulatory landscapes across diverse geographies.
Unveiling the Dichotomy of the Coliving Market: An In-Depth Analysis
An intriguing facet of the contemporary coliving market lies in its apparent dichotomy between asset-light and asset-heavy approaches, further accentuated by the influx of traditional developers into the arena. This evolving landscape underscores the transformative dynamics reshaping the housing sector.
In the asset-light paradigm, traditional developers increasingly lean towards collaborating with specialized white-label operators rather than shouldering property management responsibilities themselves. This strategic shift reflects a broader trend towards outsourcing operational functions, allowing developers to focus on core competencies while leveraging the expertise of third-party operators.
The remarkable growth trajectory witnessed by key players in the market attests to the sector’s burgeoning maturity. LA-based Node, for instance, embarked on its journey in 2018, initially offering shared living arrangements in houses. By 2020, it expanded its portfolio to include boutique coliving apartments. Fast forward to 2024, and Node is undertaking ambitious projects, developing 707 apartments across two monumental ventures in Madrid. This rapid evolution underscores the market’s maturation and the increasing sophistication of its participants.
Similarly, French company Cowool, established in 2022, has emerged as a prominent player, specializing in hybrid formats that seamlessly integrate hotels, coworking spaces, and coliving arrangements. Initially focusing on repurposing old hotels into multifunctional facilities, Cowool has rapidly expanded its footprint, boasting four operational locations with an additional four in the pipeline.
Typically, these multifaceted developments encompass approximately 5,000 square meters of space, meticulously divided to accommodate various functionalities. A significant portion is allocated to coworking areas, comprising around 1,500 square meters, complemented by 500 square meters dedicated to essential services. The residential component, spanning 3,000 square meters, embodies the essence of coliving, fostering a vibrant community-oriented living experience. Notably, a fraction of this residential space, approximately 20 percent, caters to short-stay arrangements, catering to transient residents seeking flexible accommodation options.
In essence, the burgeoning diversity within the coliving landscape underscores its transformative potential in redefining traditional housing paradigms. As the market continues to evolve, fueled by innovative approaches and strategic collaborations, it promises to redefine urban living experiences for generations to come.
Unveiling the Diverse Spectrum of Coliving: Catering to Emerging Demands
As the coliving landscape continues to evolve, tailored formats are emerging to cater to specific groups that have surfaced in recent years, presenting a wealth of opportunities for developers and operators. One such group is remote workers or digital nomads, whose transient nature shouldn’t overshadow their potential as long-term clients. Gui Perdrix aptly highlighted during the conference that these individuals, far from being mere tourists, often comprise entrepreneurs and freelancers who may eventually opt for more permanent living arrangements.
Beyond traditional coliving models, interest-based living is gaining traction, with residences tailored to specific hobbies or cultures, ranging from music studios to sports-centric communities or micro-cultural residences.
Another burgeoning market niche with a significant demand is young/active seniors – individuals of retirement age who remain physically active and engaged. Additionally, the corporate segment, commonly referred to as ‘flex-living,’ has witnessed a surge in popularity with the rise of remote work and hybrid working models. Companies increasingly seek accommodations for employees residing considerable distances from the office, necessitating flexible living arrangements for periodic in-office attendance. Major corporations like Apple are even exploring the development of dedicated flex-living residences to cater to the evolving needs of their workforce.
Drawing from his wealth of experience, Perdrix offered invaluable advice to coliving developers and operators, emphasizing the importance of avoiding common pitfalls in this nascent market. Key considerations include striking the right balance between affordability and quality, avoiding overreliance on technology, creating intimate communal spaces conducive to fostering connections, and adopting a longer-term perspective, potentially offering extended stays spanning 5 to 10 years as opposed to the prevailing one-year contracts.
Above all, Perdrix underscored the paramount importance of curating a seamless residential journey characterized by a compelling experience. From the initial discovery of the space to the integration into the community and the eventual sense of belonging, each stage of the resident’s journey, known as ‘onboarding,’ plays a pivotal role in shaping their overall satisfaction. Perdrix’s insights highlight the transformative potential of cultivating meaningful connections within coliving communities, with statistics indicating that residents who forge friendships in their first week are significantly more likely to extend their leases—an affirmation of the enduring appeal of the coliving concept.
Rediscovering the Essence of Dwelling: Exploring the Meaningful Living Experience
In the culminating presentation, Andrei Martin, a partner at London-based studio PLP Architecture and founding partner of PLP Labs, delved into the profound concept of meaning within the realm of residential living. With a focus on researching and designing large-scale urban ecosystems—termed micro-cities—Martin posed a compelling question: amidst the mass production of housing, have we lost sight of the inherent meanings embedded within our dwellings?
To illustrate how meaning can be reignited within residential spaces, Martin showcased several noteworthy micro-cultural residences. Examples such as Wembley Park in London, which attracted the Royal Philharmonic Orchestra, and East Village, a community rooted in visual arts and handicrafts, underscored the transformative potential of embedding cultural narratives within urban environments. Additionally, Martin highlighted a student housing scheme in the City of London featuring a Migrant Museum, which preserves and celebrates the diverse backgrounds of its inhabitants.
Further enriching the living experience is the infusion of lifestyle brands into the housing market. Fashion brand Diesel, retailer John Lewis, and various restaurant chains are among the entities weaving their unique narratives into build-to-rent homes, evoking specific emotions associated with their respective brands.
Moreover, Martin emphasized the imperative of adaptability in contemporary living spaces, particularly heightened in the wake of the pandemic. Homes now serve multifaceted roles, doubling as offices, cinemas, cafes, libraries, farms, workshops, and gyms. In the context of coliving, where space is at a premium, meticulous consideration is warranted to optimize functionality while fostering a sense of community.
Lastly, Martin underscored the burgeoning trend of multigenerational living, advocating for spaces that facilitate intergenerational interaction and community building. By offering flexible spatial solutions, common areas for communal gatherings, and tailored services, multigenerational housing fosters social cohesion and accommodates the evolving needs of residents across different life stages.
In essence, Martin’s discourse transcends the mere functionality of residential spaces, illuminating the transformative potential of infusing meaning, adaptability, and intergenerational connectivity into the fabric of contemporary living environments. As the quest for meaningful dwelling continues, his insights serve as a guiding light, inspiring the creation of residential spaces that nurture the human spirit and foster vibrant communities.
Rediscovering the Essence of Dwelling: Exploring the Meaningful Living Experience
In the culminating presentation, Andrei Martin, a partner at London-based studio PLP Architecture and founding partner of PLP Labs, delved into the profound concept of meaning within the realm of residential living. With a focus on researching and designing large-scale urban ecosystems—termed micro-cities—Martin posed a compelling question: amidst the mass production of housing, have we lost sight of the inherent meanings embedded within our dwellings?
To illustrate how meaning can be reignited within residential spaces, Martin showcased several noteworthy micro-cultural residences. Examples such as Wembley Park in London, which attracted the Royal Philharmonic Orchestra, and East Village, a community rooted in visual arts and handicrafts, underscored the transformative potential of embedding cultural narratives within urban environments. Additionally, Martin highlighted a student housing scheme in the City of London featuring a Migrant Museum, which preserves and celebrates the diverse backgrounds of its inhabitants.
Further enriching the living experience is the infusion of lifestyle brands into the housing market. Fashion brand Diesel, retailer John Lewis, and various restaurant chains are among the entities weaving their unique narratives into build-to-rent homes, evoking specific emotions associated with their respective brands.
Moreover, Martin emphasized the imperative of adaptability in contemporary living spaces, particularly heightened in the wake of the pandemic. Homes now serve multifaceted roles, doubling as offices, cinemas, cafes, libraries, farms, workshops, and gyms. In the context of coliving, where space is at a premium, meticulous consideration is warranted to optimize functionality while fostering a sense of community.
Lastly, Martin underscored the burgeoning trend of multigenerational living, advocating for spaces that facilitate intergenerational interaction and community building. By offering flexible spatial solutions, common areas for communal gatherings, and tailored services, multigenerational housing fosters social cohesion and accommodates the evolving needs of residents across different life stages.
In essence, Martin’s discourse transcends the mere functionality of residential spaces, illuminating the transformative potential of infusing meaning, adaptability, and intergenerational connectivity into the fabric of contemporary living environments. As the quest for meaningful dwelling continues, his insights serve as a guiding light, inspiring the creation of residential spaces that nurture the human spirit and foster vibrant communities.
Exploring the Future of Living: Insights from the Panel Discussion
In the culminating panel discussion, moderated by Dorota Wysokińska-Kuzdra, a senior partner at Colliers and executive committee member of ULI Poland, experts delved into the multifaceted realm of multigenerational living. The panelists, including Andrei Martin, Thomas Beyerle, Marta Karteczka, and Marcin Wyszomierski, offered invaluable insights into the evolving dynamics of the residential market.
Wyszomierski emphasized that while demographic changes are indeed driving the coliving market, population growth is also a significant contributing factor, forewarning of an inevitable uptick in housing prices as global population continues to expand. Against this backdrop, micro-apartments and coliving emerge as promising solutions not only for addressing housing availability but also for enhancing affordability in the face of rising prices.
Moreover, the panelists underscored the growing importance of the assisted living sector, particularly in light of increasing lifespans and susceptibility to age-related conditions. Wyszomierski advocated for larger senior homes, surpassing the current limitations imposed by Polish law, to effectively meet the evolving needs of an aging population.
In exploring potential solutions, the panel unanimously championed multigenerational living as a holistic approach that fosters intergenerational interaction and mutual support. By eschewing generational segregation, this approach not only imbues older individuals with a sense of vitality but also instills a grounded perspective in younger generations. However, the realization of this concept remains aspirational, signaling a promising avenue for future exploration within the residential market.
During the engaging Q&A session, each panelist reflected on their journey, offering insights into their professional trajectories and the evolving landscape of coliving. Karteczka, responsible for pioneering Noli Studios, one of Poland’s first extensively tailored coliving spaces, candidly shared that in hindsight, she would have transitioned to coliving sooner, given its dynamic and promising nature compared to her previous role in the hotel industry.
As the discussion drew to a close, it became evident that the future of living holds myriad possibilities, with the residential market poised for continued innovation and growth. With a renewed focus on inclusivity, adaptability, and community-building, the path ahead promises to be both exciting and transformative, setting the stage for a new era in residential living.
