Real Estate /
Poland's apartment prices continue to fall [1844]
I just wanted to give a little insight into the Warsaw market. Warsaw has a population of 3 million-plus or minus a few. For a city this size it should have over twice the office space it currently has- this is based on a country with 38 million people and Warsaw being the capitol.
So there is construction happening constantly. Most of the owners of these buildings are German. Most of the companies leasing this space are from other western European countries. Germans and others can set up shop in Warsaw with highly trained, educated and knowledgeable Polish staff- which saves the company money. So with all of these companies setting up shop here and hiring- people are still buying residential properties...therefore no bubble. But...because the market is saturated the prices are dropping and leveling out.
As well, there is spill over into smaller markets such as Wroclaw, Tricity and Krakow. Companies are setting up there as well. So- actually- western Europe is fueling the current situation in Poland- being no recession and no bubble because it is cheaper to do business here rather than in their own countries.
For example- the phenom known as a call centre. There are loads of companies setting shop in Poland because they are closer than the Indian call centres and the workers speak better English.
Another thing is that these people do not save their money. Polish people are living from paycheck to paycheck---not with major debts like the Americans --so Poles haven't hit rock bottom yet.
