In the third quarter of 2021, the transaction prices of apartments on the primary market in the 10 largest cities increased by an average of 4.2 percent compared to the second quarter. In the secondary market, the increase was 2.8 percent, according to the data of the National Bank of Poland. The prices of new flats in Łódź were the most expensive – by 11.6 percent.
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According to the “Information on home prices and the situation in the residential and commercial real estate market in Poland in the third quarter of 2021” published on Thursday by the National Bank of Poland, in the third quarter of this year. further increases in housing prices were recorded quarter-on-quarter in most of the 10 analyzed cities, and the price dynamics increased as well.
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Higher transaction prices of flats
Transaction prices on the primary market increased especially in Łódź (by 11.6%), Wrocław (3.7%) and Kraków (3.5%). In Warsaw, transaction prices of new apartments increased by 3% on a quarterly basis, and the average transaction price per square meter amounted to PLN 10,992. Declines in the average transaction price per square meter were recorded only in Gdańsk – by 2.1 percent.
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As reported, rising prices of flats in the primary markets (mainly in the developer standard, i.e. to be finished on their own and purchased with delayed delivery), with high demand, were accompanied by great interest of buyers in the cheaper secondary market, where the flat is usually ready for sale.
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An increase in offer and transaction prices was also observed in the secondary market in all groups of cities. Transaction prices on the secondary market increased especially in Łódź (4.7%), Gdańsk (4.3%) and Warsaw (3.1%). In the capital city, the average transaction price per square meter was PLN 10,905. The prices adjusted with the hedonic index grew in all groups of cities, which means that similar flats were sold more expensive than in the previous quarter.
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Dynamics of housing pricesNBP
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Increase in rental rates
In Q3, the average transaction rental rates per square meter of apartments also increased compared to the previous quarter (excluding service charges and utilities). As indicated, there was no mass listing of premises for sale. “Investors continued to look for real estate security for the capital they invested, and to a lesser extent expected an attractive rate of return. Despite the growing interest in renting, large cities still have a high supply of housing offers on long-term rental markets, including those purchased for investment purposes, which may be conducive to declines. lease rates in the future “- assessed. It was added that in recent years we have been observing an increase in interest in purchasing flats for rent by investment funds, including foreign ones.
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The rate of return on rented flats is low (approx. 2.9%), but they are still popular, as they are perceived in the long term as investments that allow for the preservation of value, it was reported.
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