The cost of both new and used apartments continues to rise. In Warsaw’s Śródmieście district, prices have reached nearly 41,300 PLN per square meter. Smaller cities haven’t been spared from the price hikes either. While some price drops are possible, they won’t happen everywhere, according to Monday’s edition of Rzeczpospolita. Meanwhile, Tusk’s government is doing nothing to address Poles’ housing needs. The lack of access to affordable homes remains one of the key reasons for Poland’s low birth rate.
Prices Are Through the Roof
According to the consultancy firm Emmerson Evaluation, last year was marked by developers adapting to changing market conditions. “The end of the ‘Safe 2% Mortgage’ program and the lack of new support mechanisms forced housing developers to adjust their investment and sales strategies,” said Dariusz Książak, CEO of Emmerson Evaluation, in an interview with Rzeczpospolita.
High interest rates (5.75%) have significantly reduced buyers’ borrowing capacity. As a result, the number of new apartments sold in Poland’s seven largest metropolitan areas dropped by 26% year-on-year, falling to just under 40,000 units. Although the rapid price growth slowed down, apartment prices were still higher than a year earlier.
The article highlights that the steepest price increases for new apartments were recorded in the Silesian metropolitan area (excluding Katowice), where prices rose by 20% year-on-year to 9,100 PLN per square meter. Warsaw remains the most expensive city for buying property. At the end of last year, the median price for new apartments in the capital exceeded 17,700 PLN per square meter (a 9% year-on-year increase), while used apartments reached over 15,700 PLN per square meter (up 14% year-on-year).
The prices of new apartments in Śródmieście are staggering, reaching 41,300 PLN per square meter (up 8% year-on-year). Meanwhile, the secondary market in Śródmieście saw a 10% increase, with prices surpassing 20,700 PLN per square meter.