Price Race on the Housing Market: Shrinking Apartment Offers and Increasing Demand

– There is a price race on the housing market with huge amounts of money at stake – says Marek Wielgo, an expert of the portals rybpowiedzotny.pl and gethome.pl.

He points out that the signal to start in this race was the announcement of the “Safe Credit 2%” program. As a result, the demand for new apartments exploded. Meanwhile, developers delivered significantly fewer apartments to the market this year than they sold. In effect their offer has shrunk dramatically.

There are fewer apartments for sale in the largest cities

Data from the Primary Market show that the offer of Krakow development companies was as much as 44% higher at the end of August. fewer apartments than eight months ago. In Wrocław, the offer of premises decreased by 37% during this period, and in the capital – by 34%.

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In all 10 metropolises, developer companies offered a total of approx. 47.3 thousand sq m at the end of July. premises, that is by 27 percent less than at the end of last year.

Decreasing number of apartments on offer from developers at the end of 2022 and in August 2023 | RynekPierowtny.pl

– In July, “Safe Credit 2%” added fuel to the fire. The number of submitted loan applications increased by almost 100% month by month! There were as many of them as in the best months of 2021, when housing loans were record cheap – reminds Marek Wielgo.

Apartment offer. Price matters

Interestingly, Łódź is the only metropolis where the offer of apartments priced below PLN 400,000 has not decreased over the last eight months. zloty. At the end of August, Łódź developers had almost 1.5 thousand of them on offer, which is the largest number among the largest cities.

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At the other extreme is Wrocław, where at the end of the year buyers could choose from almost 1.6 thousand. offers up to PLN 400,000 PLN, and in August there were only less than 140 of them, i.e. over 90 percent. less.

The analysis of the Primary Market shows that the choice of such premises has shrunk very rapidly also in Szczecin, Tricity, Warsaw, Kraków and Poznań.

Changes in the number of apartments offered by developer companies largely depend on the price of the premises. | RynekPierowtny.pl

In the metropolises where the demand for apartments is the highest, i.e. in Warsaw, Kraków, Tricity and Wrocław, there has also been a significant decrease in new apartments in the price range of PLN 400,000-700,000. zloty. For example, in the capital there were over 6.3 thousand of them at the end of 2022, and now they are half as many.

Those who can afford to spend more than PLN 700,000. PLN, they do not complain about the lack of offers. There are more of them in most metropolises than a few months ago. The problem is that apartment prices are getting higher and higher. And not only because of the increases applied by developers, but also for reasons beyond their control, i.e. rising plot prices and construction costs.

2023-09-20 12:36:48
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