This interview was first published in Property Forum’s annual CEE TOP 100 publication.

After years of very dynamic growth, the Polish residential market has started to show signs of slowing down. A momentary breathlessness or the beginning of a downturn?

Grupo Lar Poland has been active in the built-to-sell residential market in Warsaw since 2005. Throughout this time, sales and availability have remained relatively balanced, with lower sales typically corresponding to a decrease in offers. From 2016 to 2021, there was a notable increase in both sales and offers, with each reaching approximately 20,000 units per year. In 2024, sales decreased by about 20%, but this decline was also accompanied by a reduction in offers, resulting in no significant imbalance in the market. With an anticipated drop in interest rates, we are optimistic that the market will return to healthier levels by 2025.

Your company carries out its investments in Poland under the joint venture formula, which is not a widespread method of carrying out residential projects there. What are the pros and cons of such a solution in local market conditions?

We provide management services to investors, while also having skin in the game. This allows us to provide investors with a proposal of investment in projects with attractive returns. To date, we have one JV with a local partner and one with a Lithuanian one, which shows that this proposal has found interest both among Polish and foreign investors.

Renata McCabe-Kudła

Country Manager
Grupo Lar Poland

Renata has over 20 years of experience in finance and real estate. She has been working as a Financial Director and Board Member for developer and management companies with a track record of over 3,000 residential units. She is responsible for the development of Grupo Lar's activities in Poland, including strategic planning, negotiation and cooperation with JV partners, coordination of project management, negotiation in land transactions. Since taking the position of Country Manager in 2023, she has succeeded in signing two Joint Venture agreements for the management, construction and sale of appropriately 1,450 and 1,100 apartments in Warsaw. Currently, she is engaged in the preparation of a PBSA platform and negotiations with potential investors. Renata is fully bilingual (English and Polish). She also speaks excellent French and Russian. More »

What are the biggest challenges currently faced by developers carrying out residential projects in Poland?

Regarding residential projects, the main challenge is finding plots in good locations and obtaining administrative decisions within an acceptable time frame. The regulatory environment is complex and involves taking into account the increasing costs of infrastructure. On the other hand, there is a good availability of financing and construction costs have stabilized in the last 12 months. Having a professional project management team is essential for navigating these challenges, as they can effectively address new trends and requirements while ensuring that projects are delivered on time and within budget.

Your investment in Warsaw, the Lizbońska estate, is one of the more successful residential projects in Poland in recent years, with many solutions increasing the comfort of the residents and the environmental performance of the property. Are buyers in Poland able to accept higher apartment prices in exchange for their ‘greenness’?

Grupo Lar is firmly dedicated to a robust ESG approach, considering our investment in sustainability as a core principle rather than simply a strategy to increase apartment prices. We prioritize compliance with the highest ESG standards across all our projects. By embracing eco-friendly practices, the company seeks to minimize its environmental impact, reduce energy consumption, and promote the efficient use of resources.

Additionally, Grupo Lar is committed to initiatives that positively impact local communities. For instance, we are facilitating the establishment of a psychological counselling centre for children by transferring a unit to the City of Warsaw.

Our focus on building an excellent reputation and fostering trust has enabled us to maintain long-term relationships with many of our suppliers since we began operations in Poland in 2005.

Grupo Lar recently announced plans to enter the PBSA segment in Poland. Why do you have such faith in this market?

We see the PBSA segment as highly attractive because Poland has a significant student population of 1.2 million, yet there are only 12,000 modern dormitory beds available. The growing middle class in Poland is increasingly interested in providing their children with accommodations in modern dormitories. Additionally, there is a rising influx of foreign students, both from Eastern Europe, studying usually in Polish, and from Asia/Africa, eager to study in English.

What would you wish for yourself for 2025 in terms of business plans?

In 2025, we plan to advance our work on four residential projects in Warsaw, focusing on obtaining the necessary administrative approvals. Additionally, we aim to finalize agreements for our first plots to facilitate our entry into the PBSA market.