The real estate market in Poland in 2018 according to the NBP report
In January 2019, the Department of Economic Analysis of the National Bank of Poland published a report entitled „Information on housing prices and the situation on the residential and commercial real estate market in Poland in the third quarter of 2018”. The report contains many interesting information about the current situation on the real estate market in Poland. The report shows, inter alia, that:
- there is still a high demand for residential properties, although it is slightly lower than in the previous seven quarters;
- the same level of sales of more expensive, better-located apartments and the decrease in sales of cheaper apartments was noted;
- the value of newly granted housing loans in Polish zloty in the third quarter amounted to approximately 13.0 billion Polish zlotys, i.e. it was higher by 1.7% compared to the previous quarter and higher by 10.4% compared to the third quarter of 2017;
- estimated yield of residential development projects is still high, despite a slight decrease. It is associated with rising costs, including the cost of acquiring construction sites. Prices of basic construction raw materials and wages in the construction sector continue to rise. This means that budgets planned for a year ahead for investment projects become outdated after just a few months;
- the estimated value of investment transactions on the commercial real estate market at the end of the third quarter of 2018 amounted to 4,65 billion EUR, of which 46% of the total transactions value concerned commercial areas, 42% of office space and 10% of warehouse space.
The NBP report shows that situation on the real estate market in Poland is still beneficial for investors, as evidenced by, inter alia, high demand and a fairly stable level of house sales prices and transaction rents for office and commercial properties. It confirms the opinion about Poland as the market where it is worth to invest, especially in residential and commercial industry.