Year 2012 on the secondary real estate market - January 14, 2013
The year 2012 was another year of falling prices and dwindling number and value of loans granted for the purchase of real estate. The information obtained on the basis of real transaction data registered in 2012, collected from real estate agents affiliated to the Polish Real Estate Federation, in the largest Polish cities shows that Poles can afford smaller and smaller apartments, time needed to sell property is getting longer and the prices – quotation and transactional prices still show a downward trend.
one-and two-room flats are sold relatively quickly. The largest number of transactions reported by dealers from PRFN - are flats of 50 m2. Bigger flats are waiting for a customer very long time. By far the worst is the segment of houses and building plots. Those are waiting for a buyer - in some cases - more than two years.
The decrease of interest in purchase of building land is due to firstly - still high prices of land, and secondly - a severely restricted ability to get a mortgage to buy land and build a house. Because the flatprices have fallen significantly, which when sold, with a little help of credit, allowed to fulfill the dream of own house with a garden - amount of building permits have fallen dramatically
From observations of Realtors gathered in PFRN suggests that young people who want to live "on their own" due to tight regulations and restrictions in regards to mortgages, are forced to make a decision to rent a property.This in turn led to "reactivation" of rental market. This is not a choice but a necessity for ones entering adulthood, and paying rent for the home they do not own, instead of installment credit for future their own home, it is unfortunate consequence of more stringent rules to assess creditworthiness of potential borrowers – by the banks.
Agents are noticing property prices to be more realistic and reflecting market conditions. The sellers, who are under time pressure, must reduce the price from the "virtual" to realisticly achievable level. It makes you more likely to get a price bergain.
Buyers who have cash are privilaged, because if you hit a particularly interesting priced offer - have the greatest bargaining chip.
It is absolutely hard to predict how 2013 year will be like, clearly. If the banks do not alleviate the criteria for granting loans, the economic situation in the country and in the European Union, will not significantly improve, and zloty will not begin to consolidate, we should rather not expect great economic changes. This may drive further prices declines if the market will be flooded by properties acquired by banks, who can not cope with loan repayment. It would be very sad scenario for many Poles.
Joanna Lebiedź
A spokesman for PRFN, 501-138-558
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