Poland's apartment prices continue to fall

President of Central Statistical Office of Poland has announced that average monthly gross wage and salary in Poland in the second quarter of 2012 was PLN 3 496,82.

I think that will go down as the games are over so are some of the jobs.I have already seen construction on public ways stopped or slowing down.Credit crunch is squeezing.For locals is bad news.But for foreigners it can be a bargain.To elaborate my point, a flat for 400k,how would a local gather 25% aka 100k just for down payment?And for a westerner or a local who saved money abroad might be able to grab it.

Personally I favour Poland as if you buy a property in the USA pay it off lock doors forget about it and go back after 3 years ..the property is long gone cuz you didnt pay taxes on it and insurance (u lucky noone sued u),where as you do it in Poland your flats still there maybe some contents stolen but your physical property you are the owner one can go pay due taxes with a nominal interest and go on.So I still prefer poland over western countries.

Try 10% not 25%.

Central Statistical Office of Poland (GUS) provided in 2009 that 65,35% of Polish wages are below Polish avarage wage and this is a fact.

The most common wage was 2.091,35 (about 700USD)

Only 10% earned more than 5.376,34 PLN (1792 USD)

All data quoted are gross monthly wages.
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A recent report states that Krakow is the most difficult Polish city in which to buy a flat.

The study, conducted by Domy.pl and Open Finance claims that citizens must work approximately 11.5 years in order to come up with enough cash to pay for a three room property (50-square meters).

Despite prices being higher in Warsaw, Dziennik Gazeta Prawna writes that the average monthly salaries (Krakow - PLN 2,514, Warsaw PLN 3,289) mean that that residents of Krakow must wait for longer.

So to buy a family size apartment of 65m+, Would be 14-15 years earnings.

Milky, I gave you the 2012 figures, so why are you providing the 2009 figures?

I'm sure it much the same in 2012.

Apparently not. IE...


However, anecdotally I am hearing that wages are not rising and only unemployment is. Where there's employment it seems it's increasingly temporary or on a short contract.

Of course, looking around the malls today on my travels they seemed very busy. However, one or two shops were noticably empty, including one proclaiming 50% off shoe prices. That was surprising and I can only assume that even at that price people can go to Deichmann or another chain and get the same for less.

Sent to Reddit
A recent report states that Krakow is the most difficult Polish city in which to buy a flat.

The study, conducted by Domy.pl and Open Finance claims that citizens must work approximately 11.5 years in order to come up with enough cash to pay for a three room property (50-square meters).

Despite prices being higher in Warsaw, Dziennik Gazeta Prawna writes that the average monthly salaries (Krakow - PLN 2,514, Warsaw PLN 3,289) mean that that residents of Krakow must wait for longer.


According to GUS statistics from 2009 only 34,65% employees had average wages (3.232,07)(1077USD


Ok its gone up 15 euro a week. And 35% op people earn this.
Central Statistical Office of Poland (GUS) provided in 2009 that 65,35% of Polish wages are below Polish avarage wage and this is a fact.

The most common wage was 2.091,35 (about 700USD)

Only 10% earned more than 5.376,34 PLN (1792 USD)

All data quoted are gross monthly wages.


I'm just providing facts, no need for personal attack. What is wrong with this post
Sent to Reddit
A recent report states that Krakow is the most difficult Polish city in which to buy a flat.

The study, conducted by Domy.pl and Open Finance claims that citizens must work approximately 11.5 years in order to come up with enough cash to pay for a three room property (50-square meters).

Despite prices being higher in Warsaw, Dziennik Gazeta Prawna writes that the average monthly salaries (Krakow - PLN 2,514, Warsaw PLN 3,289) mean that that residents of Krakow must wait for longer.InWroclaw:

Avalon:
09 August 2012President of Central Statistical Office of Poland has announced that average monthly gross wage and salary in Poland in the second quarter of 2012 was PLN 3 496,82.

According to GUS statistics from 2009 only 34,65% employees had average wages (3.232,07)(1077USDInWroclaw:
Apparently not. IE...

Ok its gone up 15 euro a week. And 35% op people earn this.
Central Statistical Office of Poland (GUS) provided in 2009 that 65,35% of Polish wages are below Polish avarage wage and this is a fact.

The most common wage was 2.091,35 (about 700USD)

Only 10% earned more than 5.376,34 PLN (1792 USD)

All data quoted are gross monthly wages....

what is your point. There are many factors that are not charted about Polish society and real estate.

pip
go back over the thread

According to a new report from currency specialists HiFX, higher mortgage rates, property tax rises and concerns about the eurozone 
worries have encouraged homeowners to put their house on the market.

For those looking to sell up, finding a buyer is proving difficult. Around 30 per cent of second homeowners have had their property on the market for over 12 months with almost one in ten claiming that their property has still not shifted after two years. Around 45 per cent blame the number of properties on the market, especially in Spain, which is suffering from a significant surplus of homes.

One in five Brits claim that they have failed to sell their home, as they cannot get the sale price they expected and nearly three quarters of second homeowners say that their property value has decreased over the past year.

How many of you British and Irish with second homes/investment property in Poland, are currently try to sell up in Poland and cannot find a buyer?

It is hard to believe Poland is still being pushed for buy to lets:

youtube.com/watch?feature=player_embedded&v=oW0Ci9 8tVAc#!

I certainly would not invest into any of the property offers today, there are much better real investments available on the Polish market.

property-venture.com/polish-properties.html

Finally below;

property-venture.com/poland.html

This company may be reputable and service may be good for some.

Surely, you are not suggesting that the properties you link to are good value?

Krakow, a 35m2 (one bedroom ) for 14,000 zloty per m2 (unfinished) with another 50,000 plus for a parking space.

It makes the 120m2 ( 3 d/bedrooms) , 3,000 PLN m2, two free secure parking spaces, external storage shed + gardens and children's play area, look an absolute rip off.

Mind you, now that the A4 motorway is open, it will take at least 30 mins to get to Krakow.

Did you read my post?


If you work in Krakow and have access to free parking maybe this could be an option, although I would not consider it a buy/let option would you?

I could buy new builds in Warsaw with 20-30 mins travel time to warsaw centrum by public transport for 4-4,500 PLZ per m2. Now I would consider these prices value in todays market.

Yes. Perhaps it would have been better if you put the links before you said "there are much better real investments on the Polish market".

That is a opinion. I have always been instructed to put the cart before the horse, i.e comment before source although that is also a opinion.

What I see is astounding.
I know it is a worldwide trend where property in Cities are much more expensive than in suburbs, and compared to property in the provinces it is almos shocking to see what it would cost to live in Warsaw, Krakow or Wroclaw city.

With the roads that has improved so much the past 24 months the move to the suburbs will surely be on.
Let me give you an example.
We are owners of a resort in Podkarpackie and it is on the market for the past month:

Now compare it with the price of an average flat in Warsaw City:

89m2 for almost PLN700k. It shows that the market dictates the price.

It will most likely be on the market for a lot longer - being serious good luck with the sale


Better to compare it with something which gives you partial value. This is an osiedle which housed many of the social elite back in the day - even a president

You would most likely get it for 800,000 PLN probably less if you are cash rich.

Once refurbed it will give you 7,500 8,000 per month in rental income.

Anyone got info on the real estate prices for November 2012 in Lublin ?? I know they fell 1.5% in October which is a massive drop for a place which has seen little or no falls since 2005.

According to this report . There is a 17% gap between asking price and transaction price in Krakow and Poznan etc
w Poznaniu (-6,6 proc.).
Poznan saw a drop of 6.6 % in just one month (November 2012) and 3.5% drop same month in Wroclaw ,That is gigantic recent drop. Bubble bursting.

expander.pl/upload/PDF/Raport_Szybko_pl_Metrohouse_i_Expandera_-_grudzien_2012.pdf

Welcome to 2013, 4th year for the losers predictions.

Does anyone here have any real anecdotes about getting 17-20% off the asking price? I'm looking for a new apartment and all the current "investments" seem ridiculously overpriced - 7000zl/m2 on the edge of Wola's industrial wasteland in Warsaw seems massively overpriced IMO (ul. Jana Kazimierza, if anyone's interested).

Similarly, after six months of watching allegro, gumtree, oferty.net, gratka et al, it seems the same old offers are on there day in, day out - no new properties advertised, and 20 agents all offering exactly the same apartment on the secondary market. Either there are no new properties coming up for sale AT ALL, or I've somehow missed where all the real property is being advertised...

Clear your cache?! :o)

No matter what!! this is a plunge. This link below does not record the same drops ????

You may want to try offering a reward. Someone (who shall be nameless) told SeanBM and myself that he could find us Newly built flats in Krakow for 1500 PLN m2. We offered him 5000 PLN for every apartment he could find us. Strangely enough, we have yet to receive one offer? As this was a couple of years ago and the prices have been "plunging down" on a monthly basis, these apartments must be around the 500 PLN m2 mark by now.

As a Developer this report must keep you awake at night,

There is a 17% gap between asking price and transaction price in Krakow and Poznan etc w Poznaniu (-6,6 proc.).
Poznan saw a drop of 6.6 % in just one month (November 2012) and 3.5% drop same month in Wroclaw ,That is gigantic recent drop.

Milky, nothing keeps me awake at night. I made my money years ago. I bought for cash in 2005.

Five years inflation, about 25% and a 27% fall, thats around 45% fall in real terms.


And every year his prediction comes closer to reality. The pair of you just have to comprehend what 'real' versus 'nominal' prices are.

What part of "bought and already own" don't you understand. As for the Polish government making loans more difficult!!!, they will soon have to change this when the developers stop building homes (permit applications already going down) and the banks are screaming because they cannot make any profits, or, do you think they will promise voters more slums to live in? I will make a prediction, one day I am going to die. I think we can safely say that my prediction will come true so I will not be planning any holidays in the future, just in case!!!!

I understand it perfectly but what has that go to do with the discussion of falling prices, aim your comments at Milky


Yet the government is doing its very best to force prices down by restricting banks lending. Banks will make profit how they can. Screaming will not make any difference to the Basel III rules on bank lending, its completely outside the actions of of governments.

Which is a polite way of saying you are talking crap, developers and banks cannot force the government to do the impossible.

You think that Poles live in slums? Not convinced by what I've seen in Poland. Generally not very pretty but fundamentally sound.

The markets will dictate the prices. The Polish government is already worried about the slowdown in construction and the loss of jobs. If you remember, the government closed the scheme for "family first" and then, almost immediately came up with another to help young people onto the housing ladder. They will hand the responsibilities of home loans back to the banks and claim special circumstances to the EU, the argument being that they need time to catch up to the West.

You only have to look at the anger in the UK, as more young people are denied the right to buy and live independently. Its a huge vote loser for any party in power.

???


This scam grant is proof that the market does not dictate in Poland. It's blatant government interference and proof of absolute corruption. An alliance between the bandits in government and the vulture capitalist.