Real Estate /
Residential real estate values go down in Poland [455]
[quote=delphiandomine]My own feeling is that we might see prices actually increase in the small towns within 30-45 minutes train ride from the big cities. Property is still ridiculously cheap in those places, and young people especially will want to get a property somehow, even if it's not in such a desirable location.[/quote
When we take into consideration Polish real estate trends, I can only speak from the my own experience in Warsaw. When I first came to Poland in the early 90's I talked to people who decided to sell their 30-50 m2 flats in 1st and 2nd tier areas of Warsaw in order to move out to areas like Konstanscin, Podkowa, Lomianki, Anin and Piasecno. It was great for families with young kids up to 4/5 years old. As soon as the kids hit school age the parents realised that the locals schools were not up to the mark and the only schools for their children were in Warsaw proper, many decided to sell their houses just as the market went into meltdown in 1997. So they were stuck with a 1-2 hour drive in to Warsaw each morning from the suburbs. Those that had a little money bought 2-3 room flats in Warsaw again, lived in them monday to friday and back home for the long weekend. Things have not changed here the best schools are still in or around the centrum, with the exception of a few International schools that are for the higher echelons of society. The same trend is the world over, people will always gravitate to the areas with the best schools. As much as I dream about a better rail and road service in Warsaw and Poland, we are still a way off the infrastructure of schools, hospitals. rail and roads being built. If you are in your 20's or early 30's and are buying for the long term- why not !
If not it is all about location, location, location.
Getting back to your quote, when prices are going down in the centrum areas of a city in Poland, they are going down twice as quick in the burbs.
Unless you live in ' Pips ' osiedle of course.
have agreed over the past 3 years that there would be a fall/correction in prices due to the credit scenario
Exactly house prices are NOT in fact determined by the balance of supply and demand, but by how much money lenders are willing to lend.
If there is eventual increases in interest rates further down the line, and no return to the days of easy lending, mean that house prices will fall for several years to come.In theory house prices have to keep falling until they get back to long-term norms of about three or four times earnings. we shall wait and see...
