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The Polish housing construction sector faced a 5.2% decline in delivered units in 2023, a trend expected to worsen in the coming years. According to the Central Statistical Office (GUS) report, developers provided keys to 136.5 thousand properties, with a total of 220.4 thousand new homes completed in 2023, revealing a 62% contribution from private developers.
Forecasts by the Polish Association of Developer Firms indicate a grim outlook, with estimates suggesting a drop to 117 thousand new homes delivered to buyers in 2025. The industry expert, Patryk Kozierkiewicz, emphasizes the urgent need for solutions to boost supply.
Critical issues in the construction process, such as a 20% drop in building permits issued in 2023, pose a severe threat. The housing market faces challenges in initiating new projects, aggravated by structural problems in land supply. The downturn is evident in both the developer and individual construction sectors, with over 50 thousand fewer units initiated in 2023 compared to 2021.
The Polish Association of Developer Firms identifies key areas requiring attention, including unlocking land for construction, revising legislation on spatial planning, and addressing impractical amendments to housing laws. Swift action is necessary to alleviate the crisis and ensure a steady influx of new housing stock.
Supply Chain Woes
The housing sector anticipates prolonged supply shortages, driven by a lack of new investments and exacerbated by economic and political factors. Government intervention is crucial to facilitate developer activities and enhance housing availability.
Permit Predicament
The decline in building permits further hampers the industry, signaling potential future challenges in providing affordable housing. The restrictive environment raises concerns about escalating property prices.
Initiating Innovation
Despite setbacks, regulatory changes, such as adjustments in credit assessment criteria and inflation stabilization, provided some relief. However, sustained efforts are needed to navigate the housing market through these turbulent times.