In the 17 largest cities (provincial cities and Gdynia), apartment prices increased by an average of 14 percent year-on-year in the last quarter of last year compared to 9-10 percent year-on-year growth in the third quarter of last year, according to the report from the Polish Economic Institute. The highest prices are in Warsaw and Krakow.
According to the report ‘Analysis of the housing market. Q4 2023’, the increase in the two cities with the highest prices – Warsaw and Krakow – was 21 percent respectively. and 26 percent on the secondary market and 17%. and 27 percent in the primary market. Average price per square meter of apartments in Warsaw amounted to PLN 17.2 thousand on the secondary market and PLN PLN 15.8 thousand on the primary market, and in Krakow PLN 15.5 thousand. PLN on the secondary market and PLN 15.1 on the primary market.
“In Krakow, the average price per square meter in both markets has increased by more than 25% compared to the fourth quarter of 2022. Price increases of more than 15% year-on-year are also observed in other major cities. In Warsaw the increase was 21%. % on the secondary market and 17% on the primary market,” said Jędrzej Lubasiński, senior analyst of the PIE Sustainable Development team, quoted in the press release.
Rents are rising
On average, apartment rental prices in the largest cities increased by 2%. y/y. In the most expensive city – Warsaw – they rose by 9%. y/y. In the capital, renting an apartment in the fourth quarter of 2023 cost an average of more than PLN 4,400. The next places are occupied by Krakow, Wrocław and Gdańsk, where prices range between PLN 2,900 and PLN 3,000, it was reported.
According to PIE, the number of new rental offers in the seven largest cities increased by 21% in the fourth quarter of 2023. y/y. In Warsaw, supply increased by 36%. y/y, and in Wrocław by 34 percent. On a quarterly basis, the rental market in 17 cities fell by an average of 10 percent. However, the quarterly decline is seasonal and is the result of a significant increase in the supply of rental apartments. in the third quarter until the end of the academic year. Traditionally, most offers of apartments for rent appear in Warsaw, where on average more than 2,000 new apartments are added every week. ads. In other cities, the number of new offers does not exceed 1,000.
“The increase in the supply of rental apartments is due to the introduction to the market of apartments purchased for investment purposes in 2021. At that time, we noted a great interest in the purchase of rental apartments from both institutional and private investors looking for a safe investment. for their capital. Renting an apartment was then profitable compared to the interest rates on bank deposits and ten-year government bonds. The increasing supply at the end of the year is the result of the introduction of new apartments to the market from the record-breaking 2021, during which construction of almost 300,000 apartments has started,” concludes a senior analyst from the PIE sustainable development team Thomas the Wise.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
