With Poland's accession to the EU in April 2004 on the local property market boom. His main incentive buyers were from abroad - both Poles working abroad, and citizens of other countries. Responded to increased demand and construction companies that have begun to increase its activity.
Related article: Where real estate will not fall in price?Banks also issue mortgage loans of up to 110% of the value of the acquired facility, expecting to repay the difference due to rising prices. Regarding the latter, from 2004 to 2008 they increased by 15-45% per year.
However, in 2009 the demand for Polish housing declined sharply. This was due both to deteriorated financial condition of potential buyers, and with the tightening of mortgage lending. In this case, the pace of construction continued by inertia to rise, because developers have to continue and complete facilities. So, in June this year the number of the housing increased by 18.7% compared to the previous month.
As a result, the middle of this year the volume of new supply in the residential real estate market of Poland reached 9,2 thousand objects, including 4,5 thousand - in Warsaw. In view of the secondary sites, this figure amounted to 36 thousand items, reports portal Global Property Guide.
Such a situation leads to the fact that housing prices are falling, despite the economic stability. In II quarter GDP growth versus the same period last year amounted to 3,5%, while housing cheaper by 3.7%. Relative peak indicators II quarter 2008, prices declined by 10% in Warsaw, at 25% in Poznan and 30% in Wroclaw. In the metropolitan area Tricity (Gdansk, Sopot, Gdynia), the drop was 22%.
According to analysts, over the next few quarters Activity developers will fall, which will gradually lead to price stabilization.