Real Estate /
Poland's apartment prices continue to fall [1844]
I think the "real" fall is 21% - take 2008 as your start point i.e. 100% and if you have a 5% fall and a 3% fall in house prices. = 100 x 1,05 x 1,03 = 1,0815%.
Then apply 3 years compound inflation to get to your real rate = 1,0815 x 1,035 x 1,031 x 1,046 = 121%.
However no point arguing about real falls at the absolute falls are going to be 20% :)
Now we are waiting for Pip to provide her definition of a bubble !
People aren't paying that much. The average wage in Poland is now 3,416zl per month, which is 40,992zl per year. In some cities (such as Slupsk), a one-bedroom flat can be had for less than two years' wages.
what is the average salary in slupsk ? I cannot be bothered to look it up but I know from my own work that it has a big depopulation problem (about 6% reduction since end of Communism with that 6% being mostly made up of wage earning men in their 20s and 30s) and a high unemployment rate.