Real Estate guidebook 2018/2019
Positive Trend in the Real Estates Market to Continue
The construction and real estate market have been going through a boom period. In the coming months, the office market is unlikely to experience any slowdowns. A significant risk for the construction market, on the other hand, is the considerable increase in the prices of construction materials, entailing a drop in the profitability of construction projects under development.
“Investments in office and commercial real estate are still an attractive market segment, encouraged by a considerable interest in offered space on the part of tenants. On the other hand, develops active in the residential market confirm that for some time they will continue to dictate the prices,” saidMaciej Krokosiński, Director in Audit and Business Advisory Department, TPA Poland.
Will 2019 be similar? “So far, there have been no indications for the coming year to see major changes in this respect and bring about a downturn. However, the construction industry needs to remain careful. Given the expected growth tendency following the relaunch of projects that have been halted for years, the prices of construction materials are likely to go up again, which will reduce the profitability of contracts and increase the insolvency risk,” said Krzysztof Dziekoński, Partner in the Audit and Business Advisory Department, TPA Poland.
At the same time, he added, a considerable growth was still expected in the office segment. The residential market, on the other hand, will have to face the increasing prices of land, construction materials and the “Apartments for the Youth” (MdM) program coming to an end.
The dynamics in the real estate market, numerous amendments in the tax law and its practical application will be a major change for accounting departments of businesses operating in both the construction and real estate industry.
This is why TPA Poland experts decided to address this challenge and help solve numerous accounting and reporting problems by publishing an accounting case study for the real estate industry in the fourth edition of the special report „Real Estate guidebook 2018/2019. Accounting Case Studies in the Real Estate sector”.
The guidebook is designed to be of practical assistance for financial and accounting departments both in their day-to-day activities but also when preparing financial statements. The layout of this guidebook mirrors the order in which real estate companies operate and carry out investment activities. The publication and the cases presented have been divided into the following phases: development project preparation, construction, settlement, commercialization and sale of development project, structure of property acquisition, settlement of acquisition of development project, lease and ongoing maintenance, exit structure and sale of property.
What does the Guidebook offer?
- The presented accounting solutions are based on the International Financial Reporting Standards by which all financial reports for the period beginning January 1, 2018, will have to abide.
- We also highlight the basic differences between the IFRS and Polish accounting standards.