Update on Poland’s Real Estate Market for Q1 2013
June 1, 2013
The Macro-prudential Policy Bureau of the National Bank of Poland published an update on the housing sector and house prices and the state of Poland’s real estate market for Q1 2013. The study provides detailed trends in home prices, housing availability, loan availability, operating profitability and real estate development projects, construction costs and the economic situation of real estate developers in Poland.It shows figures on housing construction and the residential market up to the end of Q1, 2013.
The residential sector is slowly regaining a balance between demand and supply. The government’s subsidy program for homeowners was terminated at the end of 2012. Mortgage interest rates are decreasing, which in theory would make mortgage loans more accessible. However, banks’ lending criteria are still tight and bank lending has declined. At the same time, prices of real estate developer built houses in Warsaw and some other markets have increased and the stock of unsold developer houses has decreased, even though the unsold stock is more than twice the level considered as balanced. The number of newly commenced investment projects and issued building permits hit their lowest since 2006. The sector’s need to finance a large stock of unsold housing is likely to lead to falling profitability, losses and bankruptcies of the weakest market players.