Apartment sales this year were almost two times lower than in 2021. According to Rzeczpospolita, next year is likely to bring a fall in prices on the secondary market.
According to Otodom Analytics, the seven largest cities in Poland have 37.3 thousand sq. m. new apartments. For comparison, last year the number of new premises sold exceeded 65,000.
This significant drop in sales is the result of the collapse in the mortgage lending market, which occurred after a series of sharp increases in interest rates adopted by the Monetary Policy Council in response to runaway inflation.
In addition, the Polish Financial Inspectorate issued a recommendation for banks, according to which banks should add 5 percentage points to the current interest rate when calculating the creditworthiness of customers. As a result, many Poles lost their creditworthiness, and the demand for mortgage loans fell sharply.
We are waiting for a cheap loan
According to analysts, the situation in the housing market will not change until the availability of cheap loans improves. It seems that next year the collapse will intensify and apartments, especially in the secondary market, where there is no control over supply, will become cheaper.
- The group of buyers who can afford to buy an apartment will remain very limited, and the number of offers for sale will slowly increase, - Marcin Drogomirecki, an expert at Morizon.pl and Gratka.pl portals, says in an interview with Rzeczpospolit. “.
The hardest year
“Unless there are clearly positive changes in the market environment, 2023 will be the most difficult period in the history of the Polish real estate development industry,” Kazimierz Kirejczyk, chairman of JLL’s strategic advisory board, told Rzeczpospolita. – The industry has responded quite calmly to the challenges that 2022 has brought, showing considerable flexibility and reluctance to make hasty decisions.
Source: Wprost
