The real estate market in Poland is showing signs of recovery. In particular, housing prices in major cities are growing slow, and low interest rates on mortgages and government programs are stimulating demand. In addition, number of new buildings has been reduced, ee24.com informs with reference to Global Property Guide.
In May 2014, property in Warsaw (data on apartments by Ober Haus) fell in price by 0.9% y-o-y (€1,880 per sq.m) and adjusted for inflation – by 1.2%. For comparison, in April 2014 the first figure was -1.3%, and in May 2013 -3.5%.
Real estate in Kraków and Łódź became cheaper by 1.1%, in Poznań – by 2,5% (€1,268 per sq.m). The biggest fall in prices recorded in Gdańsk – by 5,9% (€1,303).
Economic performance has always kept pace with the growth of the real estate market in Poland in last 20 years. First there was the flow of investment (2004-2007) with the entry into the EU and low mortgage rates, and then there was price falling during the crisis, particularly in Warsaw – by 15.8%, in Kraków – by 21.1%, Poznań – by 30.7%, the Gdańsk – by 30.3%.