Apartment prices go up significantly. In 10 cities it was the highest in history
In August, apartment prices in sales advertisements exploded – informs Expander. In just one month, they increased on average by almost 2%, and since the beginning of the year by almost 10%. The price increase is the result of demand that has been frozen for many months and was suddenly released by Bezpieczny Kredyt 2%.
August was the second month of operation of the Safe Credit 2% program. The preferential loan allowed many people to purchase an apartment who previously had no creditworthiness or for whom ordinary mortgage loans were simply too expensive. In a short time, huge demand was released, which had been accumulating for almost a year. However, Expander points out that not only the beneficiaries of this program buy apartments. Many people with savings have been refraining from purchasing in recent months, counting on declines in apartment prices. Now, however, they have lost hope for better conditions and also started making purchases.
Record apartment prices in 10 cities
Seeing such great interest in purchasing an apartment, sellers raised prices significantly. In August, compared to July, they increased on average by 2 percent, and since January by over 9 percent.
The report by Expander and Rentier.io shows that record prices appeared in as many as 10 of the 17 cities surveyed. The list of cities where prices reached record levels include: Gdynia (PLN 11,392), Katowice (PLN 8,929), Kraków (PLN 13,300), Lublin (PLN 9,099), Łódź (PLN 7,969), Poznań (PLN 10,500), Rzeszów (PLN 8,814), Toruń (PLN 8,500), Wrocław (PLN 11,712) and Warsaw, where the average price is almost PLN 14.5 thousand. PLN per square meter The largest increases during the month were recorded in: Toruń (6.3%), Gdynia (5.7%), Poznań (5.4%) and Kraków (5%). In the former capital of our country – as the authors of the report note – in June, for the first time in history, the level of PLN 12,000 per sq m was exceeded, and in August it was over PLN 13,000 per sq m.
Where have housing prices fallen?
However, there were cities where prices dropped in the previous month. These are: Sosnowiec (-8%), Częstochowa (-3%), Białystok (-2%) and Radom (-0.4%).
Expander reminds that the previous price peak took place in May 2022. Then prices dropped slightly until January this year, and from February they started to rise again. Since this previous peak, prices are currently higher on average by only 4 percent. They increased the most in Katowice (17 percent), Kraków (11 percent) and Rzeszów (10 percent).
The program of government subsidies for housing loans was launched in July, and since then the money has been sufficient for smaller and smaller apartments – precisely because of the very dynamic increase in apartment prices. Let us remind you that in the case of a single person, the amount cannot be higher than PLN 500,000. PLN, and in the case of a married couple or a person raising at least one child – PLN 600,000. zloty. These limits are unlikely to be increased.
For example, a single person who has no own contribution, at current prices, can buy a maximum of 38 sq m with a preferential loan in Krakow, and 35 sq m in Warsaw. at an average price. In turn, a couple in Krakow will buy a maximum of 45 sq m, and in the capital – 41 sq m.
