Franc reality depresses home sales
schedule 16 January 2015
The soaring value of the Swiss franc after the euro rate cap was removed last week does not only present problems for those in Poland paying mortgage instalments in this currency – it also has repercussions for the entire real estate sector. This can be seen in the stagnation in the market for homes built when mortgages denominated in Swiss francs were popular, that is, in 2006–2008. The peak came in 2008, when the proportion of mortgages denominated in the currency came to almost 80 pct in some areas. In this period the exchange rate varied between PLN 1.95 and PLN 2.50 – today it is around PLN 4.26. According to Metrohouse, homes built in the 2005–2009 period constitute app. 10 pct of all those on sale at this time. In order to sell such a home at a profit it is now necessary to increase the price to take account of the increased mortgage payments, but this is entirely unrealistic under the current market conditions. Buyers who are looking for new apartments o
Already have an account? Log in
62% of content remaining
Unlock full access to the article
PLN
EUR
Lifetime access to current material
One-time payment, lifetime access.
Choose
Access includes
- Lifetime access to current material
Most popular
EurobuildCEE magazine & online subscription
Access to all EurobuildCEE materials
Monthly
Annually
You save 17% when paying annually
Monthly on one device. Annual payment
Monthly on one device. Monthly payment
Choose
Access includes
- Access to EurobuildCEE magazine edition online & flipbook version
- Exclusive news, comments, articles and interviews with the most important market representatives and experts
- Archive containing data and information from the commercial real estate and construction market in Poland and the CEE region, collected over 27 years;
- Eurojobs
- Eurobuild FM
A good foundation from which to grow
A good foundation from which to grow
Poland's role and the strength of its economy are increasingly visible in the European commercial real estate market. We have strengthened our leading position in Central and Easte ...
CBRE
Zero-emission, zero-backup? The resilience gap in modern building standards
Zero-emission, zero-backup? The resilience gap in modern building standards
As commercial buildings move rapidly toward full electrification, modern standards optimise for efficiency and emissions – but largely assume uninterrupted power supply. In C ...
Independent Expert
Strong warehouse sector whilst capital cautious and offices yet to rebound
Strong warehouse sector whilst capital cautious and offices yet to rebound
Poland’s commercial real estate market enters 2026 in good health and with solid growth potential. Warehouses remain one of the strongest sectors in Europe, while constrained ...
Newmark Polska