Prices are stabilising in most markets, and experts are pessimistic about the developments in the six-month period that has just started. The slogan “buyer’s market” is becoming a reality and the number of construction projects started by developers is decreasing.
Buyer’s market in Poland
The reading of the urban.one real estate price index for the whole of Poland prepared by Cenatorium for Bankier.pl and “Puls Biznesu” was 111.14 points in June and was 0.34 points higher than a month earlier and 5.26 points higher than in June 2021
The moderate increase indicates a stabilisation of transaction prices rather than a reversal of previously observed trends. Let us recall that since the autumn of 2021, when the interest rate increases began and the access to mortgage financing was limited, the index fell four times month-on-month.
“On the property development market, in June we noticed an increased movement in introducing new investments for sale. Investors tried to put the projects up for sale in order to avoid the investment being subject to additional costs and obligations, which were introduced on July 1 by the amendment to the developer law.
Market depends on the credit market
We estimate that the developers introduced in the second quarter of this year almost twice as many flats than they managed to sell. The future of the market depends largely on the situation on the credit market, which is not optimistic, ”indicates Małgorzata Wełnowska, Senior Real Estate Analyst.
“Some developers quickly reacted to the change in the market where buyers started to rule. Sellers begin to care more about customers, try to listen to them and provide as much information as possible. Those companies that react the fastest will have a great chance to stay ahead of the competition, ”comments Marcin Krasoń, an expert on the real estate market at obido i Otodom.