The real estate market will soon face a reshuffle. We should expect declines next year, but it’s hard to say exactly what we’ll see. On the one hand, housing prices are constantly boosted by high inflation, but on the other hand, they are hampered by low creditworthiness of customers.
The situation in the real estate market is changing dramatically due to periodic increases in interest rates. The effect of NBP activities is, inter alia, a sharp decline in the creditworthiness of Poles.
Statistics provided by PKO BP show that in the period from January to April 2022, the value of housing loans granted decreased by 15.5%. y / o At that time, the number of loans granted also decreased – by 24.8%. y/o According to peacekeeping experts, the declines are mainly due to deteriorating consumer sentiment and lower creditworthiness of households.
In May this year. The value of inquiries about mortgage loans decreased by 51.1%. y/r This is the lowest reading ever.
Currently, the biggest problem in the real estate market is getting financing from clients who do not have cash. Those who are not discouraged by high interest rates often have to postpone the purchase of the building anyway due to insufficient creditworthiness, which declines from month to month. As a result, for developers, investment costs increase, and more consumers who have real purchasing power and can buy a steady drop, says Karolina Obach, director of sales at Q3D Locum.
Reduced demand from customers has very serious consequences for developers, who are already facing a significant drop in sales of built properties.
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