Home Broker. Home Broker Real Estate Advisors

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Home Broker

Real

Real Estate

Estate

Estate Advisors

Estate

Advisors

Home Broker

Home Broker Home Broker Home Broker

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Home Broker Real Home Broker Real Home Broker Real

Home Broker Real EstateEstateEstate AdvisorEstate AdvisorAdvisorAdvisor

• individual investment advisor

• focused on demanding clients’ needs

• reliable products and professional service • presenting complex effective solutions HOME BROKER ADVISOR

HOME BROKER ADVISOR HOME BROKER ADVISOR

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• financial portfolio including real estate assets • apartment purchase advisory

• apartment investment advisory • land purchase advisory

• apartment finishing

• property management development

• real estates brokerage (selling, buying, letting)

Home Broker Home Broker Home Broker

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Within 3 years we will build the widest net of real estates Within 3 years we will build the widest net of real estates Within 3 years we will build the widest net of real estates Within 3 years we will build the widest net of real estates advisory

advisory advisory advisory

Home Broker development Home Broker development Home Broker development Home Broker development

6 6 6 6 42 42 42 42 14 14 14 14 86 8686 86 22 22 22 22 130 130130 130 2 0 07 2 0 07 2 0 07 2 0 07 2 0 0 82 0 0 82 0 0 82 0 0 8 2 0 0 92 0 0 92 0 0 92 0 0 9 Office s Office sOffice s Office s Re a l E sta te Advisors Re a l E sta te AdvisorsRe a l E sta te Advisors Re a l E sta te Advisors

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• Attractive location – 15 min away from the city centre

• One of the lowest prices in Warsaw at PLN 6,950/sqm gross

• Pre-market and fixed prices, best units selected for investors

• Attractive financing system: 10/90

Warsaw Warsaw Warsaw

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• Łódź is the fastest growing second-tier city in Poland currently

experiencing rapid growth (4.1% per month)

• Prime location – 10 min away from the city centre

• One of the lowest prices in Łódź at PLN 6,150/sqm (Ł1,116) gross

• Pre-market and fixed prices, best units selected for investors

• Development has great transport links, close to huge corporate

investment and thousands of new jobs

Lodz Lodz Lodz

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• Perfect location – 600 m from ski-lift

• Attractive financing system: 20/80 • Prices start at 6.427 PLN gross per

sqm

• High Return on Investment (ROI) • Attractive rental market

Krynica Krynica Krynica

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Warsaw

Warsaw residential

residential

residential market

market

June

June 2007

2007

Home Broker Home Broker Home Broker Home Broker

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• According to the report of Instytut Badań nad

Gospodarką Rynkową, mazowieckie voivodship was the second most

attractive region in Poland in 2006.

• The level of attractiveness

was estimated at 0,750,750,750,75

(maximum 1,00) Voivodship investment attractivness

the highest the lowest

Investment Investment Investment

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• The highest quality of human resources in Poland – significant share of well educated

significant share of well educatedsignificant share of well educated

significant share of well educated people with high

qualifications (61% of Warsaw citizens have secondary or university education and students constitute 16,5% of whole Warsaw population)

• Very high market absorptionhigh market absorptionhigh market absorptionhigh market absorption – low unemployment rate and one of the highest average monthly remunerations • Good communicationGood communicationGood communication availability – favourableGood communication

geographical position and well organized transport infrastructure

Strength Strength Strength

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Average Average Average

Average remunerationremunerationremuneration (PLN remuneration (PLN (PLN gross(PLN grossgross))))gross

Source: GUS 3 553 3 664 2 606 2 349 2 665 2 863 0 1000 2000 3000 4000 Warszawa Katowice Kraków Łódź Wrocław Poznań Trójmiasto 3 414 _{3 377} 3 313 3 524 3 633 _{3 477} _{3 493} 4 001 3 865 2 417 2 459 2 486 2 648 2 534 2 577 2 620 2 799 2 853 0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 I kw 2005 II kw 2005 III kw 2005 IV kw 2005 I kw 2006 II kw 2006 III kw 2006 IV kw 2006 I kw 2007 [P L N ] Warszawa Polska

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Unemployment Unemployment Unemployment

Unemployment raterateraterate

Source: GUS 4,4% 4,7% 4,9% 5,2% 5,5% 5,6% 5,9% 6,3% 6,6% 14,4% 14,9% 15,2% 15,9% 17,8% 17,6% 17,6% 18,0% 19,2% 2,0% 4,0% 6,0% 8,0% 10,0% 12,0% 14,0% 16,0% 18,0% 20,0% I kw 2005 II kw 2005 III kw 2005 IV kw 2005 I kw 2006 II kw 2006 III kw 2006 IV kw 2006 I kw 2007 Warszawa Polska 4,40% 5,30% 5,30% 11,90% 7,40% 4,60% 5,20% 0,00% 5,00% 10,00% 15,00% Warszawa Katowice Kraków Łódź* Wrocław Poznań Trójmiasto

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The smallest one- and two-person households constitute 65% of whole households in Warsaw According to The National Census (2002): • 757.6 thousands of households • 648.6 thousands of units • shortage: 109 thousands of units 27% 19% 12% 4% 38%

one-person two-person three-person

four-person five-person and more

Households Households Households

Households structurestructurestructurestructure

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• Huge economic potentialeconomic potentialeconomic potential – 1/8 of average country GDP is economic potential produced in Warsaw

• GDP per capita in Warsaw is 3333 times highertimes highertimes highertimes higher than average in

Poland

• 1/3 1/3 1/3 of science and technical resources is located in the city 1/3

• ConcentrationConcentrationConcentration of the most important metropolitan functionsConcentration metropolitan functionsmetropolitan functionsmetropolitan functions connected with the control of national and regional

economy

• Increase of international positioninternational positioninternational positioninternational position as a regional financial centre in CEE

• Very highhighhigh dynamichigh dynamicdynamic of prices in residential real estate market dynamic

with high acceptance of rising prices by prospectors (attractive payment system for investors ie. 10/90)

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16 618 14 408 14 928 16 202 10 914 13 070 6 849 12 335 12 233 10 300 13 036 14 434 18 334 13 543 8 007 3 714 8 177 3 708 3 624 2 152 _{7 477} 4 447 5 714 4 136 6 249 4 981 12 516 3 141 0 5 000 10 000 15 000 20 000 25 000 30 000 building permits units completed building permits units completed building permits units completed building permits units completed buildin g permits units completed building permits units completed building permits units completed 2000 2001 2002 2003 2004 2005 2006

Warsaw Warsaw agglomeration (without Warsaw)

Scale of construction Scale of construction Scale of construction

Scale of construction ---- number of building permits and units number of building permits and units number of building permits and units number of building permits and units completed

completed completed

completed ininin Warsaw and Warsaw agglomeration in Warsaw and Warsaw agglomeration Warsaw and Warsaw agglomeration Warsaw and Warsaw agglomeration

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Number Number Number

Number ofofof buildingof buildingbuilding permitsbuilding permits inpermitspermits ininin WarsawWarsawWarsawWarsaw////PolandPolandPolandPoland

Source: GUS 10,19% 72,38% 4,35% 0,83% 1,83% 4,05% 0,62% 5,75% Warszawa Łódź Poznań

Trójmiasto Katowice Kraków W rocław pozostałe miasta

16 618 14 928 10 914 6 849 12 233 13 036 18 334 0 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 18 000 20 000 2000 2001 2002 2003 2004 2005 2006

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Units completed Units completed Units completed

Units completed ininin Warsawin WarsawWarsaw////PolandWarsaw PolandPolandPoland

Source: GUS 11,76% 70,59% 3,80% 1,03% 2,37% 4,33% 0,38% 5,74% Warszawa Łódź Poznań

Trójmiasto Katowice Kraków W rocław pozostałe miasta

14 408 16 202 13 070 12 335 10 300 14 434 13 543 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 2000 2001 2002 2003 2004 2005 2006

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444 ₄₃₆ 397 385 424 316 387 337 498 0 50 100 150 200 250 300 350 400 450 500

Warszawa Łódź Poznań Trójmiasto Katowice Kraków Wrocław Polska średnia dla UE

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7,98 1,6 4,8 6,6 1,4 8,7 7 3,1 4,7 0 1 2 3 4 5 6 7 8 9

Warszawa Łódź Poznań Trójmiasto Katowice Kraków Wrocław Polska średnia dla

UE

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Current zoning plans cover approxapproxapproxapprox. 17% . 17% . 17% . 17% of

ofof

of thethethe city the city city areacity areaareaarea

Covering of zoning plans in Warsaw Covering of zoning plans in Warsaw Covering of zoning plans in Warsaw Covering of zoning plans in Warsaw

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14,7% 24,0% 8,5% 6,5% 3,5% 10,0% 4,0% 38,5% 2,0% 2,5% 4,5% 56,5% 1,0% 21,0% 0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% Bem ow o Bia łołę ka Bie lany Mok otów Pra ga P ołud nie Rem bert ów Śró dm ieś cie Tar gów ek Urs ynów Waw er Wes oła Wila nów Wło chy śol ibor z

Covering of zoning plans in Warsaw districts Covering of zoning plans in Warsaw districts Covering of zoning plans in Warsaw districts Covering of zoning plans in Warsaw districts

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Source: tabelaofert.pl

Level of average prices per 1m2 of flat Level of average prices per 1m2 of flat Level of average prices per 1m2 of flat

Level of average prices per 1m2 of flat betweenbetweenbetweenbetween 2004200420042004----2007200720072007

Source: GUS 7 932 zł 7 354 zł 6 561 zł 6 045 zł 5 415 zł 4 879 zł 4 590 zł 4 288 zł 4 365 zł 4 341 zł 4 193 zł 4 031 zł 3 892 zł 2 500 3 500 4 500 5 500 6 500 7 500 I KW ART AŁ 2004 II K WA RTA Ł 20 04 III K WA RTA Ł 20 04 IV K WA RTA Ł 20 04 I KW ART AŁ 2005 II K WA RTA Ł 20 05 III K WA RTA Ł 20 05 IV K WA RTA Ł 20 05 I KW ART AŁ 2006 II K WA RTA Ł 20 06 III K WA RTA Ł 20 06 IV k w 2 006 I kw 200 7r.

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0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 B u ild in g se ct or Se rv ic e fo r re al es ta te an d co m pa n ie s In d u st ry (in cl . C D E) Tr ad e an d re p ai r C o m m u n ity , so ci al p ri va te an d o th er se rv ic es , Tr an sp or ta tio n te le co m u n ic at io n, s to ra ge se rv ic es , H o te ls an d re st au ra n ts Warsaw (3 633,94 PLN) Mazowieckie Voivodship (3 388,79 PLN) Poland (2 687,48 PLN) PLN

Average monthly remuneration Average monthly remuneration Average monthly remuneration

Average monthly remuneration ---- company sectorcompany sectorcompany sectorcompany sector February 2007

February 2007 February 2007 February 2007

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• Average employee of company sector in Warsaw could afford monthly less than 0,5mless than 0,5mless than 0,5mless than 0,5m2222 _{of flat in 2006, having in}

mind that average price of 1m2 _{was 7.354 PLN}

• In 2006, it would take 9,5 years9,5 years9,5 years9,5 years (!) for average employee

of company sector in Warsaw to earn enough to buy

54,7m2 _{flat costing 402.264 PLN, assuming that whole}

income would be dedicated for flat purchase

• Taking into account the level of average monthly

remuneration, the minimum mortgage period for the flat described above is 35 years

Purchasing power of Warsaw citizens Purchasing power of Warsaw citizens Purchasing power of Warsaw citizens Purchasing power of Warsaw citizens

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Purchasing power of Warsaw citizens Purchasing power of Warsaw citizens Purchasing power of Warsaw citizens Purchasing power of Warsaw citizens

0,47 0,51 0,53 0,43 0,49 0,54 0,87 0,35 0,34 0,45 0,00 0,10 0,20 0,30 0,40 0,50 0,60 0,70 0,80 0,90 1,00 War szaw a Łód ź Pozn ań Ols ztyn Trój mia sto Bydg oszc z Lubl in Kato wic e Krak ów Wro claw

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Warsaw districtsdistrictsdistrictsdistricts

Post-industrial area of

Praga Płd. ś_{oliborz i}Ś_ródmieś_cie:

bus terminal;

apartment area at Rydygiera St.

New estates in districts

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5 380 zł 6 347 zł 7 217 zł 9 414 zł 5 416 zł _{5 322 zł} 6 026 zł 8 336 zł 8 574 zł 8 765 zł 12 501 zł 15 968 zł 14 019 zł 0 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000

I Q 2004 II Q 2004 III Q 2004 IV Q 2004 I Q 2005 II Q 2005 III Q 2005 IvQ 2005r. I Q. 2006 II Q 2006 III Q 2006 IV Q 2006 I Q 2007

The dynamic of prices in Warsaw The dynamic of prices in Warsaw The dynamic of prices in Warsaw The dynamic of prices in Warsaw ŚŚŚŚrrrróóóódmiedmiedmieśśśściedmie cieciecie

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4 027 zł 4 317 zł 5 200 zł 5 431 zł 5 776 zł 5 771 zł 5 379 zł 5 702 zł 6 553 zł 6 957 zł 7 192 zł 8 900 zł 9 527 zł 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000

The dynamic of prices in Warsaw The dynamic of prices in Warsaw The dynamic of prices in Warsaw The dynamic of prices in Warsaw Wola

Wola Wola Wola

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3 242 zł 3 207 zł 3 621 zł 3 660 zł 3 575 zł _{3 480 zł} 3 634 zł 3 750 zł 3 800 zł 4 533 zł 5 300 zł 5 793 zł 7 203 zł 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000

The dynamic of prices in Warsaw The dynamic of prices in Warsaw The dynamic of prices in Warsaw The dynamic of prices in Warsaw Targ

Targ Targ

Targóóóówekwekwekwek

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4 157 zł 5 069 zł 4 947 zł 4 931 zł 4 957 zł 4 950 zł 4 938 zł 3 990 zł 4 490 zł 4 818 zł 7 743 zł 7 648 zł 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000

The dynamic of prices in Warsaw The dynamic of prices in Warsaw The dynamic of prices in Warsaw The dynamic of prices in Warsaw Praga

Praga Praga

Praga PPPPóóóółłłłnocnocnocnoc

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3 087 zł 3 596 zł 3 635 zł 3 197 zł 3 384 zł 3 297 zł 3 295 zł 3 386 zł 3 559 zł 3 731 zł 5 167 zł 4 969 zł 6 540 zł 0 1 000 2 000 3 000 4 000 5 000 6 000

The dynamic of prices in Warsaw The dynamic of prices in Warsaw The dynamic of prices in Warsaw The dynamic of prices in Warsaw Wawer

Wawer Wawer Wawer

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5 969 zł 7 837 zł 5 061 zł 4 992 zł 5 026 zł 5 079 zł 5 383 zł 5 362 zł 5 795 zł 5 772 zł 6 647 zł 7 193 zł 8 042 zł 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000

The dynamic of prices in Warsaw The dynamic of prices in Warsaw The dynamic of prices in Warsaw The dynamic of prices in Warsaw Wilan

Wilan Wilan Wilanóóóówwww

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• Higher standard of finishing reflected by using good quality materials and the newest technology

• Increasing number of offers „ready-to-move-in” • Tendency to offer some additional services for

residents

• Increasing of construction costs (materials and labour costs) caused by:

boom on the construction market

lack of both qualified and unqualified construction workers due to emigration to EU

Market Market Market

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rises (+) and decreases (-) of prices 57,80% 0,10% 4,00% 23,50% 54,00% 24,10% 2,00% 2,30%--5,00% 5,00% 15,00% 25,00% 35,00% 45,00% 55,00% 2004 2005 2006 est. 2007

building materials labour costs

Market trendstrendstrends –––– changestrends changeschanges ofchanges ofof constructionof constructionconstruction pricesconstruction pricespricesprices

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The dynamic growth of prices causes:

• Increasing interest in cheaper units outside Warsaw located within 45 min. drive distance from the city centre

• Houses outside Warsaw become attractive alternative in comparison with apartments located in the most expensive districts

• Increasing interest in developing post-industrial areas (loft projects)

The most attractive loft locations: • Praga Północ • Praga Południe • Wola • Powiśle Market Market Market

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• Increasing competitiveness of secondary market where prices have stabilized within last months achieving the level of

prices comparable to prices of primary market in similar locations

• Appearance of „new secondary market”

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• EURO 2012 is one of the indicators that will cause the further increase of building materials prices and labour costs

• Some of infrastructural investments planned in the city

modernization of Stadion X-lecia

II route of underground

2 new bridges

completion of planned ringroads

Conclusions Conclusions Conclusions Conclusions

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Planned Planned Planned

Planned infrastructureinfrastructureinfrastructure investmentsinfrastructure investmentsinvestmentsinvestments

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• It is expected that in 2007 the dynamic of prices compared to 2006 will be much lower with annual price increase at the level

of ca. 15%

• The next years with the scale of construction expected to be much higher should bring stabilization of prices

• The definition of social buildingdefinition of social buildingdefinition of social buildingdefinition of social building presented by the government in April 2007 defines “social” using the criteria of size. In the case of flats the limit is 120flats the limit is 120flats the limit is 120 mflats the limit is 120 mmm2222_{, while for houses this is 220 m}_{, while for houses this is 220}_{, while for houses this is 220}_{, while for houses this is 220} _m_m_m2222_.

These limits should allow about 90% of new properties to fall within the 7% bracket.

• Each 1 m2 _{above the limit will be taxed 22% VAT}

Conclusions Conclusions Conclusions Conclusions