Prospects improving in Poland report REAS
Overall real estate sales in Poland increased in February and March and developers are reporting that the high sales figures can be attributed to a growing number of cash buyers.
According to REAS, falling inflation and mortgage rates are also helping drive sales, and in April 2013 most banks were offering rates of 4.5-5.0%, compared to 6.0-7.0% twelve months earlier.
The company states: ‘If predictions of low and stable inflation within the next two years prove accurate, we might witness the lowest interest on mortgage loans in the history of the Polish housing market: at 4.0-4.5%, and in some instances even below 4.0%.’
Regarding new supply, REAS reported that in Q1 2013 six urban centres (Warsaw, Kraków, Wrocław, Tri-City, Poznań and Łódź) completed a total of 4,700 new units, which is over 2,000 less than in Q4 2012 and the lowest since Q3 2009.
Overall stock of property is falling now and the steepest declines, compared to Q4 2012, were in the Tri-City (-10.6%) and Wrocław (-8.7%). Moderate falls were observed in Warsaw (-5.5%), Łódź (-5.4%) and Kraków (-4.9%), while in Poznań the number of available dwellings fell by -3.7%.