bolek
1 May 2010
Real Estate / House prices in Poland to drop more or rise again? [228]
Avalon, I respect your post and don't doubt that a lot you say is close to the mark, however I just feel you tend to speak for the property developers and not see the flight of the average home buyer. Real Estate is a type of ponzi scheme in the sense that if all homes in Poland went on the market today, the homes would be worth nothing. (like in the US) The current property prices in Poland more so in the big cities are controlled by Real Estate Agents and property developers, there has to be a readjustment, otherwise the vast majority of poles will be out of reach of ever securing a property. Poland will never be a rich country, not because it is not a highly intelligent nation (which it is) but because it has nothing to sell to the world, like mineral resources, it is only a feeder. It is interesting to note that since the recession the value of the zlote to the US dollar has gone down, which could indicate that less dollars coming in are pushing the value of the dollar up, also the price of the dollar was just over 2 zlote a couple of years ago and is now worth just under 3 zlote, which indicates that prices of real estate in dollar value has gone down some 30%.
Our correspondent Majatek has hit the nail on the head with his comments, he tells as he sees.
he is talking about pure investment. Any price will be "too much" for him as he wants to maximise his profits when he sells on. Are you and milky looking to buy a house or apartment with sitting tenants?
Avalon, I respect your post and don't doubt that a lot you say is close to the mark, however I just feel you tend to speak for the property developers and not see the flight of the average home buyer. Real Estate is a type of ponzi scheme in the sense that if all homes in Poland went on the market today, the homes would be worth nothing. (like in the US) The current property prices in Poland more so in the big cities are controlled by Real Estate Agents and property developers, there has to be a readjustment, otherwise the vast majority of poles will be out of reach of ever securing a property. Poland will never be a rich country, not because it is not a highly intelligent nation (which it is) but because it has nothing to sell to the world, like mineral resources, it is only a feeder. It is interesting to note that since the recession the value of the zlote to the US dollar has gone down, which could indicate that less dollars coming in are pushing the value of the dollar up, also the price of the dollar was just over 2 zlote a couple of years ago and is now worth just under 3 zlote, which indicates that prices of real estate in dollar value has gone down some 30%.
Our correspondent Majatek has hit the nail on the head with his comments, he tells as he sees.