Poland sees surge in residential market prices
Poland has seen the second highest increase in residential property prices in the EU in 2020.
According to data released by Eurostat prices, Poland rose by 11.3 percent in the first quarter of 2020 and by 10.9 percent in the second quarter of the year compared with the same period in 2019.
Only Luxembourg saw a bigger increase in residential property prices with a 13.3 percent growth in Q2 2020.
The EU average was a 5.2 percent increase while Hungary and Cyprus both saw property prices decline by 5.6 and 2.9 percent respectively.
Analysis from Ernest and Young showed at the end of 2019 the average price per square metre in Warsaw exceeded 10,000 PLN. This is the most expensive city for housing in Poland but Wrocław, Kraków and the Tri-city area of Gdańsk, Sopot and Gdynia all had an average price of over 8,000 PLN per m2.
Poland has the largest residential market in Central and Eastern Europe and is predominantly made up of owner-occupied housing as opposed to rental properties, although Ernest and Young predict that there could be a growth in rental properties as first time buyers struggle to gain entry onto the property ladder.
Real estate services firm JLL noted that there had been a decrease in sales on the big 6 markets in Poland but as less flats were available on the market during the period prices remained high. They were less sure about the direction of the market in the second half of the year:
JLL ‘Residential market in Poland – Q2 2020’ said: “In the current situation, it is difficult to draw conclusions regarding the demand-supply ratio based on its usual level, comparing the size of the current offer with sales in the last four quarters.
“We cannot expect sales to return quickly to the record numbers. However, it is also difficult to assume that they will remain at the very low “COVID-induced” level in H2 2020 as well.”