Residential Property in Poland Increased in Price
The highest growth in housing prices among the European Union countries in 2020 can boast Poland, which took second place in the Eurostat ranking in terms of growth dynamics and Luxembourg. The organization's report says that in the 1st quarter of the year, residential real estate could be bought at more than 11% more expensive than a year earlier, and in the second qtr by 10.9%, while in Luxembourg in the 2nd quarter of 2020 housing had to pay more than 13% more than in 2019.
Compared to the average dynamics in the European Union, this is 8% more. At the same time, in some countries of the continental community, the dynamics of prices for residential real estate has a negative indicator, for example, to almost 6% decline in Hungary.
According to a study conducted by Ernest and Young, the most expensive residential real estate in Poland is located in Warsaw, where you have to pay more than 10 thousand PLN for each square meter. In other large cities of the country, such as Krakow, Wroclaw, some districts of Gdansk and some others, the cost per square meter of living space was more than 8 thousand PLN.
The company also reports that the share of rented housing is likely to grow in the near future, despite the fact that in Poland, as in the rest of Eastern Europe, real estate in which its owners live prevails, while the country has the largest housing market in the region.
Prices were kept high by the limited supply of housing, despite the fact that real estate company reported a decrease in sales in six markets of the country. The company's experts, answering the question regarding the forecasts of the market movement in the second half of the year, could not confidently state where the trend will turn. In a situation similar to the one that has developed in the Polish residential real estate market today, it is rather difficult to predict changes in supply and demand by a simple method of transferring current indicators. However, they are confident that it is most likely not worth expecting a jump-like movement both up and down.