Distinguished by diversity
Small talk
We’ve been seeing a trend for real estate sector diversification. AFI’s portfolio covers a wide range of ultramodern and older buildings, including offices, retail, residential and mixed-use projects. Do you feel equally comfortable with all kinds of different investment projects?
Indeed, we have developed class A office buildings and mixed-use projects in line with sustainable development principles as well as older historic buildings that we convert into premium class properties. At the same time, we are growing quickly in the PRS segment, which is set to grow massively in the CEE region. We feel equally comfortable in the role of both the developer and asset manager of a large number of properties. I believe that it is through our competencies and diversity that we are able to grow under the current market conditions, where we are seeing so much economic, geopolitical and social turbulence.
How do you assess the PRS market in Poland?
AFI Europe mainly focuses on real estate that brings in rental revenues. Previously, these were generally office and retail centres, but these days our main strategy is to grow in the PRS sector. Under our AFI Home brand, which operates in Poland, the Czech Republic, Serbia and Romania, we have already developed around 3,000 rental apartments. We believe that the PRS market, which still only accounts for a fraction of the apartments in Poland, will continue to show stable growth. This is being strengthened by the limited number of apartments on sale in large cities with limited access to mortgages as well as the rise in working migrants due to the refugees from Ukraine. PRS operators with ready projects or secured land in central well-connected locations will have no problems attracting potential tenants. The alternative solution of renting a fully-furnished apartment in a professionally managed building instead of people buying their own property is becoming attractive to more and more people. The increase in social mobility, changes in lifestyle, and also the long road that the traditional residential market has to travel down before it regains its balance are all factors that work to our advantage.
Are you considering entering the senior living market?
We are keeping a close eye on all the alternative markets that are emerging in the residential sector, but right now we are concentrating on PRS. There’s no doubt that the senior housing market in Poland, although it is still niche, has the potential for growth due to the ageing population and its consequences. The rising number of people past retirement age means that apartments with easy access to medical, physiotherapy and social facilities will become more popular. We are not ruling out our engagement in such projects in the future.
And what are your company’s plans for the immediate future?
In 2025, our portfolio grew by 550 apartments in our latest project in Warsaw – AFI Home Metro Zachód. After the success of Złota 83 we are preparing for the renovation of the 19th C Natanson townhouse on ul. Nowy Świat right next to pl. Trzech Krzyży. One thing that makes us stand out is our engagement in large-scale joint projects with other experienced developers. This autumn, we are going to be handing over the PRS section of the Bohema lifestyle project developed by Okam Capital in Warsaw’s Praga district. In the city’s Wola district, we are developing Towarowa 22 together with Echo Investment and Archicom. This is going to be a modern, friendly quarter that is comfortable to live in, with offices (Office House, the first office building, will be completed in H1 2025), rental apartments under the AFI Home brand, apartments for sale, restaurants and other services. Towarowa 22 fits in with our strategy for the further development of Warsaw, whereby we create big city space but promote sustainable development. For us as an investor, this is an important criterion for building up our portfolio. We are also not going to stop looking for attractive sites or buildings for offices or apartments.
