Real Estate /
Prices of apartments in Krakow are collapsing further down in 2010-2011 [150]
Over the span of years 2002-2008 real estate prices in Poland have increased drastically with over 1200.00%.
According to a major Polish newspaper, Gazeta Wyborcza, the average monthly salary in Warsaw buys 0.18 m2, or in Kraków 0.14 m2.Same sources give rental profitability at 4% yearly.
This is lower than interest rates on bank deposits (6% in Polbank etc.).
In early 2009 the Polish property market began to show signs of a property bubble;
these included:
banks increasing loan periods from 30 to 50 years to extend credit limits;
over 2 million families already in debt, and roughly 500,000 more going in debt every year;
increasing interest rates number of new apartments for sale in Warsaw at Polish real estate portals exotic companies declaring real estate development plans;
Polish economy showing signs of the overheating due to government incompetence:
from 2006 to 2009 the foreign deficit almost tripled;
imports, which were decreasing (by 5%) in 2005, jumped to a 35% increase in 2009
stagnation of prices and dramatic drop of sales in a long period of time with dynamically increasing supply of residential properties.
All in all, the polish real estate bubble will burst very soon,
and
prices will come crashing down 