Housing Prices in Poland
The last quarter of a year usually means slowing down in Investment business. However in the last three months of 2017, developers started as many new projects as they did in the 3rd quarter of the year and the number of apartments being handed over was the highest in history.
2017 was very successful for banks giving mortgage loans – the loan amount was as high as the high season of 2012. The report of the research institute also summed up the situation in property market, which was very good for creditors.
It’s normal to have less activities in the last quarter of the year, especially for new investments. This was also noted in 2017, when developers started 45100 construction projects, which was 17% less than in previous months. The amount of constructing permits remained the same – 59600 apartments.
According to the Statistical Office, from October to December 2017, there were 25800 new apartments built, which was slightly better than in previous months.
Developers got constructing permits for 30200 premises. The number of apartments being handed over was 28400. It was 19,45% more than a quarter before, also got one of the highest scores in the development sector, according to industry analysis.
In the last three months of 2017, the rise of transaction prices was noticeable. Gdansk and Wroclaw markets showed the tremendous change. The average price of each sqm of the apartment in Gdansk has increased PLN 243 (4,11%), and PLN 227 in Wroclaw (3,99%).
The price rise on a smaller scale was noted in Krakow (PLN 128), Poznań (PLN 104), Warsaw (PLN 95). In other Polish cities, prices were barely raised.
Housing prices trend to rise systematically since 2013, however good developers who understand customer needs do not raise price much, and the real estate market is stable.