Poland's next property boom

scorpio 20 | 188

29 Jul 2009 / #1

Interesting article entitled "Poland's Next property boom" recently in the Warsaw Business Journal, written by Tim Hill who is the operations director for Mamdom.

It still surprises me that these opinions never seem to reflect the prices of real property (land, forest, pastures, small and large farms, etc.). They only focus on flat prices in large cities.

I do agree that property prices will start to rise again in all sectors, especially for agricultural properties and farms.

Overall, Mr. Hill expressed a fair opinion.

andy b 4 | 156

29 Jul 2009 / #2

Hi Scorpio,

I already posted a link to this article in the following thread: https://polishforums.com/real-estate/good-time-invest-35288/

I hope you and Mr Hill are right, but as I commented in the other thread, for the property market to improve in Poland, the banks need to start lending again to both individuals and developers.

On the same topic here is a news item someone sent me a few days ago:

Less new homes next year
POLAND The number of new homes built in Poland by the end of the year is to grow 5-10 pct on 2008's figures, according to the Polish Association of Developers. The number of new residences is expected to come to 170-180,000, whereas the figure for 2010 is predicted to decline by 10-20. In 2011, according to the Association, the number of new dwellings will be down by additional 20 pct in comparison to the 2010 figures. According to data by the Polish Central Statistical Office (GUS) in H1 76,018 homes came onto the market - almost 10 pct more than H1 2008. In the first six months of the year, construction work on 67,840 units started - a 28.3 pct decrease y-o-y. The number of building permits was also significantly down in H1 2009, with 90,357 permits issued in the period - a 21.4 pct decrease y-o-y. (Source: PAP)

Wroclaw Boy

29 Jul 2009 / #3

Overall, Mr. Hill expressed a fair opinion.

Interesting, initially i was going to quote that Tim Hill never has a bad word to say against Polish property and that still is the case, never the less the article rang true on a number of issues.

Especially:

Firstly, a vast number of new apartments awaiting buyers are the wrong type of apartments. Studios and one-bedroom apartments are, as ever, in demand by young professionals getting onto the housing ladder, but the two-, three- and four-bedroom apartments currently in the supply chain are proving of little interest – a classic mismatch in the market.

SeanBM 35 | 5,797

29 Jul 2009 / #4

a vast number of new apartments awaiting buyers are the wrong type of apartments. Studios and one-bedroom apartments are, as ever, in demand by young professionals getting onto the housing ladder, but the two-, three- and four-bedroom apartments currently in the supply chain are proving of little interest – a classic mismatch in the market.

That has always been the case.

the banks need to start lending again to both individuals and developers.

Hit the nail on the head.

OP scorpio 20 | 188

30 Jul 2009 / #5

I already posted a link to this article

Thanks for letting me know! I must have overlooked it, sorry about that.

These types of articles only seem to focus on 'flats', and this alone doesn't truly represent the entire real estate market in any country.

Each sector of the market must be analyzed separately, and not lumped into one. Flats, Building plots under 1 hectare, Farmland exceeding 1 hectare, Farms with buildings which include arable land, forests, commercial property, etc. Not all of these sectors perform equally.