In May, developers in Poland’s seven largest cities sold a total of 2,447 apartments. This means a 35 percent decrease compared to April, according to the analysis of the RynekPierwotny.pl portal. The new data has been described as a “black May in housing markets”.
Apartment sales were worse by 49 percent. Also compared to May 2021. “But at that time loans were record cheap. Moreover, because of their high inflation Many wealthy Polish people invested their financial surpluses in apartments, hoping to increase their value and rental income ”- the experts noted.
As indicated, this year among experts is a common belief that the demand for housing will decrease due to the increase in interest rates on housing loans and the economic consequences of this. The war in Ukraine. “May sales data seem to confirm this expectation” – underlined.
Experts noted that the increase in sales in April could have been a temporary recovery, in connection with the announcement of the new recommendation of the Polish Financial Supervisory Authority. It is a recommendation of the KNF, according to which, as of April, banks are required to calculate creditworthiness, taking into account interest rates 5 percentage points higher. “Its effect is a decrease in the creditworthiness of potential apartment buyers. Therefore, according to Biuro Informacji Kredytowej (BIK), the number of people wanting to purchase housing loans increased sharply in March,” we read in the analysis by RynekPierwotny. pl
Located in apartment sales
It was noted that the sale of apartments fell sharply in all the cities analyzed. According to experts, developers in Warsaw, Krakow and Wroclaw have reasons for concern. “In April they could have been happy with more contracts, but in May they didn’t have much to be happy about. They sold 24%, 38% and 40% less apartments than in April, respectively.” – They pointed out.
“There hasn’t been such a weak month in terms of sales in the capital since the COVID-19 shutdown in April 2020.” – They added. Compared to the same period last year, sales fell, for example, in Warsaw by 54 percent, in Wroclaw by 49 percent, and in Poznan by 32 percent. Gdansk by 40 per cent.
“In the capital of Wielkopolska, developers found buyers for only 154 apartments! Also in this city, the worst month in terms of sales was April 2020.” – We read. For comparison, last year developers from Poznan sold an average of 426 apartments per month.
In all the cities analyzed, 1,852 apartments were sold in total, a 46% increase. lower than in April. The biggest drop, by up to 88 percent. It’s about Poznan.
MarketPierwotny.pl experts noted that “in all the cities analyzed, developers put up fewer apartments for sale than they had sold in May.” In their opinion, “in Warsaw it seems as if the developers used the handbrake.”
The increase in housing prices has slowed
Analysis shows that May halted the increase in the average price per square meter of housing offered by developers.
“In Katowice, Krakow, لودód and Pozna, the average remained at the level of April, and in Gdansk it decreased by as much as 2 percent. This is a result of the introduction on the market of a group of apartments with an average price of about 9,000 PLN per square meter, which is lower Much more than the average in width, which in May amounted to 11.4 PLN per meter ”- we read.
1% increase in the average price per square meter relates only to Warsaw and Wroclaw.
According to experts, “rising construction costs mean that the price bar continues to rise.” As they note, the changes can be seen better when comparing the price structure of apartments. Over the past year, the number of apartments in all cities was less than 8,000. PLN per square metre.
Main image source: Damian Lugosky / Shutterstock.com
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