New apartment sales up by 40 pct q/q in Poland - report

Darek Delmanowicz/PAP

Sales of new apartments in Poland grew at a record-high quarterly rate of 40 percent in the Q1 2021 pointing to the good shape of Poland's residential real estate industry, a report has found.

Property developers in major Polish cities sold a total of 19,500 flats on the primary market in Q1 2021 improving by 3 percent the highest result recorded so far in Q4 2017, real estate services firm JLL said in the report.

JLL analysts indicated that after a temporary stagnation resulting from pandemic related restrictions in movement in Q2 2020, and the still cautious policy of banks in Q3 last year, interest in buying flats rebounded at a surprising pace.

The situation on the supply side looks much worse. Although, the number of new units increased by 14 percent quarter on quarter and 7 percent year on year to reach 13,900 premises, due to demand considerably exceeding supply the number of new apartments on offer is declining, JLL reported.

"This stimulates further price growth," the report said.