Poland's apartment prices continue to fall

2006 was the middle of the developers boom. the first in made bank. they set the prices and they got them because the market was still new and not a mass in builds. Still a lot--but not outrageous.

fast forward to now...the market is saturated, buyers have more choice- developers have to lower their prices.

some places in Warsaw were selling at 12,000 to 15,000 pln per m2---some still are, actually. Now the prices have lowered to about 4800 to 5500. The will drop more- my best guess is from 3900 to 4200 in some areas and even less in the outskirts of town.

Are you sure you're not mixing high-end with low end?

I don't know much about Warsaw but here in Krakow I think 7000 is the average but you can buy for 2000 zloty more or less depending on location and finish.

have a look here
ober-haus.com/files/lt/files/reports/Ober-Haus%20Polish%20Cities%20Apartment%20Price%20Index%20June%202012.pdf

Cheers.

Very cheap for Warsaw surely? That's approx the current price in parts of Wroclaw. although cheaper can be found on occasion.

there is an area in the south of Warsaw called Miasteczko Wilanow- next to the Wilanow Palace. This is how much they go for. In the north of the city, Zoliborz--they are more expensive. An area in Centrum called Powisle- the prices vary from 9,000 to 15,000. This is because the area has little opportunity for new construction, it is close to university, close to the old town and the wisla. The prices are not dropping in Powisle. I know because we are trying to buy an income property here and I stalk the prices.

In Zûrich, a primary school teacher would get 70-90 k CHF annually (that's roughly 5-6k€ per month.;)

As I said, now here it is from the horse's mouth -


Source estateagenttoday.

Back to Poland, and Wrocław. Am seeing a slight increase in banners hanging on balconies or windows saying flats are for sale. Could be a seasonal slowing or could be evidence prices will give way somewhat. Caveat is that Wroc seems very busy and buzzing, and the NBP may cut interest rates - when the Bank of England did that, the 2005 prices which I thought was a bubble, just went further north. That's my honest take on things - I am not currently viewing properties to buy so have only a weak feel for the market at present. On the rental side, prices seem to be dropping a bit, some landlords doing deals like 500 for July and resume normal rent in August, etc. There are some landlords still asking top money, it's not a universal drop.

well.. this time of the year is not the time for price drops traditionally, but surprising enough they still went down for June. Don't forget the own you own home grant is only gone 5 weeks. Its removal,alone, will knock 10 % of prices.

Poland’s apartment prices keep falling
June 26, 2012
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Poland's apartment prices can fall by a further 5-6% by the end of the year, the daily Rzeczpospolita writes citing real estate market analyst Jaroslaw Jedrzynski.

By the time the market reaches its trough in H2 2013 or the turn of 2013/2014, prices may fall by up to 20%, the expert says.

Returning to the prices from before the apartment boom in 2006 is, however, not possible, Katarzyna Kuniewicz from Reas consulting adds.

ROFL! Your own source shows you're talking utter bollocks there!

why is it so difficult for people to understand that the price is falling to reach the levels of what they should have been in the first place. it is not a fecking crash.

If the price in the first place was inflated over 80% and then it falls 80% to a more realistic price--does not make it a crash. If the prices fall 100% then it is a crash of 20% under what the price should have been. we are not there yet and no matter how many times chicken feckin little says the sky is falling- doesn't mean it is.

All those people relying on the higher prices think differently. To them, it's a crash.

sorry man you got me confused there,can you elaborate?

But if that happened that would make it a crash by any conventional measure or definition, It's just that some people may be unwilling to call it a crash for their own personal reasons. Once a price reaches a level and drops by that sort of percentage, it's a crash, regardless of how with hindsight the price was "inflated" unreasonably.

If Milky thinks we'll drop to late 2006 levels, I'd appreciate anyone with better maths than me to tell me what the sq m price was in Wroclaw at that time for the middle part of the market.

Yes, thats precisely what it is.

And you really should either learn what percentages mean or keep quiet, because its embarrassing.

I'll second that, she seems to have a taboo with certain words. Maybe she'll flip out and go irreversibly insane if she hears the word "BUBBLE", I'm sure her fellow AstroTurfers, will gladly join her semantic madness.

whatever, slag me all you want. Fact is I know all about property in Warsaw and the fact there is no bubble. And all those that are claiming there is a bubble seem to not own any property in this country anyway. I guess I will just keep making wise decisions and increase our portfolio while those that claim there is a bubble own nothing.

I have posted numerous times links that claim what I say- of course nobody acknowledges them. Again that is fine. A few years from now while our properties are creating an income for us- I will be proven right.

and that is cool by me.

When someone is honestly 55% right, that’s very good and there’s no use wrangling. And if someone is 60% right, it’s wonderful, it’s great luck, and let him thank God. But what’s to be said about 75% right? Wise people say this is suspicious. Well, and what about 100% right? Whoever say he’s 100% right is a fanatic, a thug, and the worst kind of rascal.

and they overvalued the property by - what was it, £300k/25%? get real man. Nobody (except maybe Polish agents) would be so ignorant to overvalue a property by that kind of margin, i think London agents would be a bit smarter as well.

Does it happen? of course it does but not on that scale.

I'm impressed that you came back after two weeks though


Wise in your opinion.

I agree with you 138%, Milky.

How is Disneyland's London branch?

Is there a Disneyland in London? I thought they may only have this sh$t in Paris (except America, of course).

Quite arrogant really - I own 3 properties over here, one I would say was a great investment, one OK and one awful. Nothing to do with wisdom and everything to do with luck and timing. I'm in the market for another one and after 6 months of haggling think I might get it for 30% less than the asking price.

With all the discussion about sources I'm surprized nobody else picked up the Rzeczpospolita article from Tuesday showing year on year falls in the secondary market of 10% in Poznan, 8% in Lodz and Warsaw and 6% in Wroclaw.

Which doesn't bode well for somebody who made a certain bet about 20+% falls!

Not as far as I know!


Thanks for posting that info, I didn't know because I can't read Polish very well, and don't keep an eye on the Polish press (the online translate services aren't brilliant Polish->English).

5 months to go ! It's early doors ! We did have 10 percent in wroclaw though :)

Is it true that there is no annual property tax in Poland? I.E. you permanently own property used as a primary residence? In the Anglo world this is called alloidal title and is nearly unheard of. Property tax is government's big stick to motivate the peasants into generating economic activity.

In the UK it's called Council Tax and varies depending where you live. I pay around £1000 a year which sucks big time.

Yes of course because the citizens of Anglo nations are tax slaves. But i've been told such taxes do not exist in Poland.

No it is not true.