![The prices of the apartments are starting to drop. However, it is still more expensive than in 2021 [RAPORT]](https://i0.wp.com/bi.im-g.pl/im/ab/62/1b/z28714923IER,Mieszkania--zdjecie-ilustracyjne-.jpg?fit=%2C&ssl=1 "The prices of the apartments are starting to drop. However, it is still more expensive than in 2021 [RAPORT]")
Expander and Rentier.io experts analyzed nearly 36.5 thousand. unique online sales offers apartments – both from the primary and secondary market. They noticed that in June, compared to May, prices fell in 11 of the 17 cities surveyed.
The biggest drop in apartment prices was recorded in Częstochowa, where in just a month they were plummeting by as much as 10 percent. They also fell significantly in Sosnowiec – by 7 percent. Lower prices were also recorded in the largest markets: in Warsaw (2%), Kraków (1%), Gdańsk (4%) and Wrocław (1%). Interestingly, prices in Lublin increased significantly – by 4 percent.
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“This is another confirmation of the decline in prices. Let us recall that recently PKO BP announced that, according to their data, transaction prices of new apartments in Q2 fell in 4 of the 6 largest cities” – experts point out.
Housing prices in June 2022 Source: Expander and Rentier.io report
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Apartment prices are still higher than in 2021. In Szczecin, they increased by as much as 21 percent.
It should be added, however, that compared to the previous year’s level, prices are still higher in all analyzed cities. The leader is Szczecin, where prices increased by 21 percent It is also much more expensive than in June 2021 in Poznań (18%), Rzeszów (16%) and Wrocław (16%). The lowest annual growth was recorded in Sosnowiec and Katowice, where prices are 6 percent. higher than in 2021.
Housing prices are falling. Reason? Increase in interest rates
Experts indicate that the main reason for the decline in prices on housing markets is an increase in interest rates.
On the one hand, this makes mortgage loans much more expensive and less accessible. This significantly limits the demand from people who would like to buy an apartment for themselves. It also forces some borrowers who cannot cope with the repayment of installments to sell a flat. This is especially true for those who cannot take advantage of the statutory credit holidays
– we read in the report.
Higher interest rates also limit investment demand. It is possible to obtain similar or even higher profits on bank deposits or bonds than those generated by an investment in an apartment for rent.
– Expander and Rentier.io analysts write.
However, they point out that this situation may change as rental rates are rising significantly. And if the downward trend in home prices continues in the coming months, the profitability of such investments will definitely increase.
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