Polish house prices fall
Polish banks will lend more than zł.50 billion this year to clients looking to purchase real estate, Rzeczpospolita reports. That's an increase over past years, even though the average price of homes was down across all major urban centers in Q1. Those drops were not insignificant, Jacek Furga, chairman of the Real Estate Finance Committee of the Polish Bank Association, told the newspaper. He estimates the average house price dropped by between zł.50 and zł.100 per square meter.
From Warsaw Business Journal
Apartments in Poland cheaper than in 2010
According to recent data from real estate market researcher AMRON, the average cost of an apartment in Warsaw decreased by some zł.35,000 last year. In the first quarter of this year, the average price stood at zł.464,000, while in Q1 2010 it was zł.499,000.
In Kraków, this difference is even greater - the average transaction price dropped by more than zł.50,000 to reach zł.375,000.
"There are two main reasons behind this decline in average prices - lower apartment rates and a different structure of the market," Jerzy Ptaszyński, an analyst from AMRON, told Rzeczpospolita.
"To put it short, Poles are now buying smaller and cheaper apartments," he added.
Analysts predict that within the next year average prices will stabilize, with the possibility of a slight decline. If a decline were to happen, it should not, however, exceed five percent, they say.