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Grzegorz Dobrowolski
Vice-President of the Polish Real Estate Federation
Member of the CEPI Board of Directors
CEPI : Poland has seen many changes in recent years, including becoming a member of
the EU. How has this impacted the real estate market in Poland and what do you think are
the main differences becoming a member of the EU has made?
Access to the European Union created many changes and possibilities. It should be
taken into consideration that the big effort was done before formal access, mainly of
the legal area, to prepare the internal law for the rules based on European
directives.
This year Poland, and other 9 countries, celebrate the 10th anniversary of the
accession. We can divide this period into two parts. The first 5 years it was a
dynamic development of the real estate market. The reason for such acceleration
was a combination of different elements, European funds, participation in the
Schengen zone, access to the EU labor market, transfer of money, services and
companies, increase of economical activity, and , as result of these, increase of
GDP and individual income. From today’s perspective we can say, that it was a
happy time. The second half started in deep crises, which limited the activity of the
real estate investors, individual as well as institutional. At the moment the situation
is unstable and the future is sometimes unpredictable, but we do believe that the
progress is continuing, however slow.
Access to the real estate professions was regulated in Poland but has
recently been deregulated. What were the main reasons given for
deregulation?
Deregulation was introduced as a government project. The author was the Ministry
of Justice. In his vision deregulation should open the labor market, enable the
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competition between the companies, encourage young people to search for
employment in Poland, lower the costs of services, create a freer and more flexible
economy. It sounded good, but as usual, the devil is in the detail. Unfortunately
neither Ministry nor members of the Parliament Committees, were eager to listen
and analyze the arguments presented by the Polish Real Estate Federation, and
other professional organizations of brokers and managers. Deregulation was
implemented par force and eliminated, beyond social consultation. At the end it was
promulgate as a success. May be in political and media message sense, yes it was
a success - but for the real estate market it was disaster. In fact the potential
clients of real estate agents and managers were deprived of the basic safety
guaranties and protection of their rights and personal property value.
What is the main result of deregulation for real estate professionals, and also
for consumers?
Option “O”: no required competency, qualifications, standards and rules, is
dangerous for the consumers as well as for the brokers and managers, who for last
20 years tried to build a credible and professional image.
The clients are not prepared to evaluate the real level of professional service, and
might be easily cheated, lose everything they own or make an unfavorable
commitment. Instead to anticipate the problem with the professional assistance, the
case will be solved by the court. It is more expensive and time consuming, and last
but not least, unpredictable.
The recent public opinion poll, proved that nearly 60 % of potential clients are
afraid of the negative consequences of post deregulation. 45% of respondents
declared that the they would feel safer if the state licensing system was reinstated.
Only every 5th response stated a belief in an effective self regulation mechanism of
the real estate market services.
What are professional associations doing to respond to the current situation?
Within the present necessities there are two main levels of activity: information and
education. Information means the Central Register of Real Estate Brokers and
Managers, run by the Polish Real Estate Federation, since mid December 2013.
Using the internet, everyone can find information about the person who provides
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the services, her/his professional experience, education, insurance, professional
diplomas, trainings, studies or other forms of education and specialization.
Education means the training program prepared by the Education Committee of
PREF. The program is addressed to those who would like to enter the market or to
develop their professional experience. The trainings are carried out by regional
associations, and seem to be more and more popular. We are also preparing the
program for the higher schools based on the CEPI educational standards.
Is self-regulation a possible solution and how could it work in Poland?
Yes, self regulation is a good solution. But if it is going to be recognized by the
market, it should be effectively promoted and disseminated. PREF is deeply
engaged in this process, but it requires time and money. The problem is that we do
not have sufficient funds or time. That is why we use the methods of “partisans
marketing”.
The second, important, element of self regulation is that it needs to be recognized
by the state authorities. Our intention is not to reconstruct the state licensing
system, but to respect the PREF Register and educational standards as an
important and credible element which creates a safe real estate market. We have
just started to talk with the Ministry of Justice and I do believe that our meetings will
have a positive result.
Do you have any suggestions as to how you would like to see the real estate
professions develop in Poland and why, what could they be like in five years’
time?
I am aware that there is no way back to the previous system. And in fact managers
and brokers do not need it. What we need is to create a clear message, that the
brokers or managers, cannot provide their services “ by coincidence”. They are
professionals, and are well prepared to take care and responsibility of one of the
most important elements of their clients necessities and needs.
In 5 years time I would like to see information on private real estate advertisement
stating: real estate brokers and managers mostly welcome!, or at least : broker? –
why not, instead of: brokers excluded !
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