Are The Communist Era Blocks Of Poland Really A Bad Buy?
At the end of the Second World War thousands had been made homeless by the large scale destruction of cities such as Warsaw. Many, however, either owned land or had relatives with land. Wood was abundant and building a small house was a quick and well understood task. Those that could did, but those who were completely destitute were housed in the surviving period properties of city and town centres.
This was a controversial policy. No one wanted the damp, drafty, poorly insulated, difficult to heat apartments with antiquated plumbing and outside toilets. They might be pretty to walk past but in a country with sub zero winters they were not a desirable residence.
This thinly spread population however created issues for Stalin's industrialisation, cities had to have more dwellings and, as with much of Europe, these were to be built out of the revolutionary new material - concrete. But they were not to be for the homeless or unemployed, they were for the workers who would need to pay for them and they were not going to come cheap.
Families pooled savings and worked overtime to generate the deposits required to secure the new apartments in the grey, bland blocks. Waiting lists were massive and, even in 1979 when 279,000 dwellings were completed, demand far outstripped supply. Doctors and lawyers lived alongside factory workers and nurses in unprecedented equality.
The appeal was a practical one. The homes were double glazed, had radiators, inside toilets, hot and cold running water, smaller rooms that were cheaper to heat, large communal gardens, playgrounds for children, ample parking and wide pavements and roads. Some were bought outright but high prices meant the majority were co-owned with a housing association. For the latter a monthly payment was required to gradually buy out the housing association's share.
Needless to say, against this backdrop, a home in one of these concrete blocks were a source of immense pride and both the apartments and the blocks were well cared for by their owners. They looked like the social estates of Great Britain, France or Germany but in reality they were a world apart. Better built and better managed they stood the test of time while their Western counterparts were ripped apart by council tenants who had no vested interest in the place where they lived.
Where foreign journalists have gone wrong is obvious when you know. They get off the plane and into a taxi which drives them past these huge estates They think, "That's just like a council estate I know" and they steer clear of them. Estate agents and developers want to show off the country's progress rather than its communist past and as hosts and guides to the journalists they also steer clear of them.
Where they are partly right is that "Poles can't wait to get out of them". New wealth and a much lower population density than many other European countries has led to unheard of opportunities and buying land on which to build a house has become a realistic ambition for hundreds of thousands. Give almost any person living in a flat the opportunity to afford a house and it would be fair to conclude that individual would say "I can't wait to get out of this apartment". It does not mean, however, that there is anything wrong with the apartment.
"But wait", say the journalists in their defence. "If it was just about buying a house why do new developments of apartments sell so fast?" The answer is in housing density. In Poland this is more intense than anywhere else in Europe. According to the United Nations there are 317 dwellings to every 1,000 Polish inhabitants compared to 400 dwellings in Great Britain and 425 dwellings in Bulgaria. There simply aren't enough "old blocks" to go round in a country that is getting richer and where young families used to live with their parents and grandparents.
New developments do also offer alternative living and provide a statement about any residents status as nuevo rich. For the ever expanding young professional class modern architecture, porterage, onsite security, a communal gym and other luxuries are further obvious attractions. They do, however, have to be matched with their downsides. The service charges are higher, there is less green space as builders are driven by profit on limited land, the build quality can be worse with thinner walls between the flats and the locations can be further out of town.
But the twentieth century estates are not crumbling. In Western Europe the vast complexes thrown up as socialist housing are now often considered for demolition. In Poland they are being regenerated. New facades, extra insulation, redecorated staircases, modern paving and children's play areas are making eyesores into attractive neighbourhoods. The improvements are well received by the owners of the apartments and they are lasting rather than suffering vandalism.
So what is the future for the "Communist era blocks"? Well richer Poles have been following the habits of many Westerners by becoming small property investors in the buy- to-let market. The older estates represent better value for money and have been ignored by foreign buyers while at the same time there is little difference in the rental achieved. This means yields of around 10% are comfortably realistic while service charges and maintenance are low and stable. These apartments also offer first time buyers a way onto the property ladder in a market that has seen substantial price rises.
It should always be remembered however that the ultimate aim for the majority of Poles remains detached bricks and mortar with their own garden and in this sense most "can't wait to get out of these communist era blocks and these new developments". But with a rising number of buy-to-let investors and a realisation about how much they offer compared to new builds it may not be long before journalists will need to say "Poles and Foreign buyers can't wait to get into these Communist Era blocks!"
=========================================================== For solid, reliable and unbiased advice on buying property in Poland get Tim Hill's essential printed guide at ==> http://www.bookshaker.com/product_info.php?products_id=195 ===========================================================
Tim is Mamdom.com's Operations Director managing a team of consultants who help foreign buyers identify and purchase suitable Poland property opportunities for investment, development and relocation. As well as speaking regularly at seminars on the Polish real estate market his comments are often quoted in the domestic and international press. Tim is married and currently lives with his wife, Agnieszka, in the Polish city of Lublin.
Source: http://ezinearticles.com/
Added: March 20, 2008