The Housing Market in Poland for second quarter of 2024

Lodz
Publish Date

The second quarter of 2024 did not bring encouraging news for those preparing to buy a home. Prices in transactions on the secondary market are rising again, as are the average prices in developers' catalogs. The latest data is presented by the Metrohouse and Credipass Barometer, prepared in collaboration with RynekPierwotny.pl.

Reasons for Price Increases: While prices in the developer market are influenced by many factors such as production costs, competitive environment, and supply and demand, the secondary market operates differently. Owners of properties for sale often overestimate their prices, leading to prolonged sales periods. This can cause slight price decreases in listings but, transaction data shows a continued upward trend in all analyzed cities. Cash buyers and those using standard mortgages are driving these higher prices, particularly for premium properties and more geographically diverse transactions.

Rising Prices in New Housing: The average listing prices per square meter increased in all major cities. Warsaw's market remained relatively stable, while Wrocław saw price hikes after a period of stability. Kraków had the highest share of offers over PLN 20,000 per square meter, surpassing Warsaw and Gdańsk. Surprisingly, Łódź also had a higher percentage of expensive offers compared to Wrocław and Poznań. In Kraków, the share of sales for properties over PLN 15,000 per square meter increased significantly.

Awaiting the New Government Program: The draft of the new government support program, the naStart housing loan, was presented in the second quarter of 2024. Its impact is uncertain and may not be as significant as the previous „Bezpieczny Kredyt 2%” (Safe Credit 2% program). The program's limitations, such as income caps and maximum loan amounts, might make standard loans more attractive. The program is expected to start in January 2025.

Category
REAL ESTATE