Poland: Increasing Demand for Houses and Rising Prices

Poland: Increasing Demand for Houses and Rising Prices
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According to an article in the Rzeczpospolita newspaper, Polish banks are receiving a large number of low-cost loan applications granted under the government program "Safe Credit at 2%" in effect since July, while developers are adapting to the subsidy program. Meanwhile, house prices are increasing, some even at a double-digit rate.

In July, in the seven largest urban agglomerations, builders sold approximately 5,800 houses, twice as many as the previous year. The surge in demand was triggered by the relaxation of mortgage restrictions that began in February.

However, the supply of houses is diminishing, and developers are trying to respond to this growing demand by adjusting their projects to meet the program's criteria. This has led to an increase in house prices, especially for smaller units.

Despite this situation, some experts warn that the hope of purchasing an affordable house with a loan may not necessarily translate into actual transactions, as many banks are dealing with a significant volume of requests.

Overall, the concentrated demand supported by the subsidy program is expected to continue driving up house prices at least until the end of the year, leading to a growing shortage of houses on the market.

According to an analysis by the specialized portal Tabelaofert.pl, here are the average prices per square meter for new houses offered in July:

    Warsaw: Just under 15,200 PLN, 14.7% higher than in July of the previous year.
    Gdansk: Approximately 13,900 PLN, an 18.8% increase.
    Krakow: Nearly 13,800 PLN, a 17.8% increase.
    Poznan: Approximately 12,200 PLN, a 19.1% increase.
    Wroclaw: Over 11,900 PLN, a 12.8% increase.