Basin of apartments for rent to be built in the center of Warsaw. And this is where!

September 2021

We already have a permission to convert a part of former Orange buildings into apartments for rent - the investor announced. Also the former technical building, towering over the tenements in this part of the city centre, may be turned into a residential skyscraper for rent.

350 million zlotys was paid by Zeitgeist Asset Management for six buildings in the city center, in the area of Nowogrodzka, Poznańska and St. Barbara streets. These include a four-storey house from 1933, a monumental eight-storey building of the Post and Telegraph Office from 1931 and a 22-storey technical building, towering over this part of the city centre since 1975. They were all sold by Orange, the heir to Telekomunikacja Polska.

Apartments for rent in former post office in Warsaw

- We are at the stage of finalizing an architectural tender for the whole area. In the coming weeks we will evaluate the ideas presented by architectural offices. There are several very interesting concepts which we want to discuss with representatives of the city and all the interested parties - Peter Noack, co-founder and president of Zeitgeist Asset Management tells us.

He reports that the buildings at Barbara 2a and Barbara 6/8 already have a permit for redevelopment. - According to our plan, they will be intended for a residential building. The first residents will be able to move into it at the beginning of 2023, says Noack.

The Noacka company specializes in building apartments for rent and private dormitories. In Warsaw, it is converting a former office building at the intersection of Ludna and Wislostrada streets into student dormitories. In Wrzesińska Street in Praga-Północ she started to develop a historic tenement house, planning apartments for rent there. The investment stopped a year ago after a wall of the tenement house collapsed. It also plans to set up apartments for rent and a dormitory in an old office building on Dluga Street, next to Krasinskich Garden. - The student house on Dluga Street will host its first students next year," Noack announces.

Apartments for rent in Warsaw. Increasing demand

- The pandemic has brought increased demand for apartments for rent. People are afraid of making long-term commitments due to the instability of earnings. A full-time job - required by banks to grant a loan - is no longer the standard. In a rapidly changing economy, term rental is simply a safer and more convenient option, argues the president of Zeitgeist Asset Management. And he proves that a professional operator of apartments for rent, which, unlike an individual landlord, plans for the long term and does not change its mind about the sense of renting apartments, is a better partner for people looking for housing.

Zeitgeist is no exception, large corporations are becoming more and more involved in renting apartments in Warsaw, such as the NREP fund, which in June bought for one hundred million euros as many as a thousand apartments built and planned in Bemowo and Służewiec. Even Atrium, the operator of several Warsaw shopping malls, intends to invest in apartments for rent. In a few weeks it wants to start the construction of the first building next to its Promenada mall in Gocław. It also plans to add apartments for rent next to its Reduta, King Cross and Targówek malls.

Today in Warsaw companies have about 2.5 thousand apartments for rent. By 2023, this pool is expected to grow to 9.5 thousand. The rate of growth is considerable, but it will still be only less than one percent of all apartments in Warsaw.

Converting the former Orange office buildings into rental apartments could be a positive change for this part of Downtown, as more life will come to the area.

What about the 22-storey technical building? It is still occupied by the Orange company. It houses the infrastructure which is "strategically important" for the telecommunication system in Poland. In the sale agreement Orange has stipulated that it will move out only in 2026, by which time it will have finished setting up the infrastructure in its office building in Jerozolimskie Avenue, which will take over the tasks from the skyscraper.

The only possible solution is to convert the building into rental housing. Or its demolition and replacement with a high-rise building. The development plan for the Poznańska Street area, passed in 2017, allowed for an 80-meter building in this place (that is, about 7 meters higher than the current one), which could have, among other things, a residential or hotel function - functions in which Zeitgeist specializes. The advantage of such building would be the view on the city center and its location within few minutes walking distance from the metro station.

- At the moment we do not exclude any option of its development - says Noack.

Provisions concerning this plot, together with 90 per cent of the plan, were annulled by the Mazovian Voivode. So far the town hall has not initiated a new planning procedure. Anyway, most probably a skyscraper with apartments for rent will be erected in this place.

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