Priced out of the market
The Expert Eye
Marek Wielgo is a residential market analyst at Property Group
The beginning of the year saw a big rise in the activity of residential developers, but in most cities this has not led to the prices for new housing stabilising as was expected. The developers, meanwhile, are now faced with empty sales offices. And the slump in buyers in April was a warning shot for those who have been clearly overestimating the financial means of their potential clients
Probably no one expected residential developers to begin the year with such a flourish. According to Statistics Poland, construction work was launched on almost 41,000 new homes – the highest figure ever recorded in Poland. Even the figures for the beginning of 2021 were lower, when new construction was being fuelled by record cheap loans.
Polish cities vying with each other
Clearly, this year’s activity cannot be explained in a similar manner, with Statistics Poland recording rises in six of Poland’s seven largest cities. (Warsaw saw a 12 pct fall in the number of construction launches.) Łódź stands out in particular, with developers launching construction work on 4,200 units in the first quarter, which is not much less than the figure for the entire previous year. Statistics Poland also points to a big increase in activity in Wrocław, Kraków and Katowice, while in the Tricity and in Poznań the rise can be traced back to the previous year.
However, from t
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