The latest reports from the housing market in Poland indicate positive trends in its development. The year 2017 was considered a record year for the development industry, even before its end. This was confirmed by sales results for the fourth quarter and the growing demand over the supply of apartments, being the first since 2013.
Since its beginning, the year 2017 had been forecasted as very promising. These forecasts came true, and even exceeded expectations. As many as 72,700 residential properties were sold, which is the highest result in history and means an increase by more than 23% y/y.
According to the REAS report, the total number of housing transactions on the six largest markets in Poland (Warsaw, Cracow, Wroclaw, Tricity, Poznan, Lodz) reached 18,900 in the last quarter of 2017, i.e. 5% more than in the same period of 2016. The result of this quarter also exceeded the record result of the first three months of 2017.
For the first time since 2013, the demand on the market exceeded the supply:
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Such high demand was also accompanied by thriving work of developers. Last year, they put into use as many as 67,000 of new premises. Growing prices are also behind the galloping demand. In big cities, prices ranged from a few to a dozen or so percent. The most dynamic price increase was recorded in the field of purchase of one-room apartments. It appears that the upward trend will continue this year. The most expensive Polish city was traditionally Warsaw, with an average price higher than PLN 7,000. The next place was taken by Gdansk and Wroclaw, where the price per one meter of the apartment fluctuated around PLN 6,000.
A good situation for building new apartments in Poland is supported by favorable interest rates, growing wealth of the society and relatively good price/earnings ratio, support from the state budget in the form of the Mieszkanie dla Młodych program, as well as increase in investment purchases due to the very attractive rental profitability compared to other saving methods. There may be a change in the proportions of the purchase of own apartment in relation to the rental, due to the expiration of the MdM program and the launch of the Mieszkanie Plus program, as well as increase in the standard of properties offered on the rental market, just through the increase in the purchase of apartments by private individuals for investment purposes. The end of the MdM program will bring yet another boom for housing purchases in January, when the last financial resources are distributed under it. It is estimated that they will be sufficient for about 15,000 buyers and will be used very quickly.
Last year was also a very good year for the development segment of Grupa Kapitałowa IMMOBILE. The construction of the most important office investment in Bydgoszcz – the IMMOBILE K3 building – was continued without problem. Its completion is expected in the middle of this year.
The year 2017 also brought the completion of the sale of apartments available under stage 0 (zero) of the Platanowy Park estate. The construction of stage I, consisting of 148 apartments, 19 service premises and 164 parking spaces in multi-position garages is coming to an end, and the rate of their sale is gradually increasing, due to the upcoming completion of construction and commencement of hand-over of apartments to new owners.
Last year, the building permit of stage II of the Platanowy Park estate was also prepared and obtained. As part of this construction, 195 apartments with a total area of 11,249 m2, 5 service premises with a total area of 219,5 m2 and 217 parking spaces in the underground garage will be constructed. The works will be commenced soon.
In addition, the company performed intensive works on the method of use of the construction plot in the Fordon in Bydgoszcz and search for interesting properties for new development projects, both in Bydgoszcz and on new domestic markets.