Developers build more and more apartments which are then bought by an increasing number of clients. When it comes to the number of transactions, Warsaw is a phenomenon – writes “Puls Biznesu” magazine.
According to preeliminary data of polish statistical bureau, GUS, around 162 700 apartments were built in 2016 in Poland. It’s a 10,2 % rise in comparison with 2015. What’s more, after 1990, only once was the annual number of built apartments higher – in 2008, which was the peak of development boom after Poland’s EU accession in 2004.
“The polish market flew off, it’s a phenomenon in Europe – and I’m not afraid to use this word. Warsaw is unsurpassed even by London” – says Kazimierz Kirejczyk, chairman of consulting company Reas, which collects data about the number of deals made by developers in big cities.
According to company’s data, in spite of strong demand, the prices of new apartments are lower than during the peak of development boom in 2008.
Mr. Kirejczyk thinks however that the market has come to the turning point. 2017 will be marked by high suppply and slowing demand. The cause for the slowdown is expected to be the phasing out of the “Mieszkanie dla Młodych” (“Apartment for Young”) progamme and increasing inflation. The second cause will in turn result in reduction in profitability of investment acquisitions and more expensive credits.
Sources: “Puls Biznesu”, TVN24 BiS, PSCoC
