President of a development company: there is no room to raise prices
The president of Dom Development admitted that after very good sales at the beginning of the year, the company was out of breath. Data from other sources, e.g. the number of loans granted, also indicate that Poles are buying fewer apartments, even though more and more apartments are being added to the market each quarter. Does this create room for price reductions?
– The year started very well. In the first months, demand and sales were high. Now we have a slowdown. It is not entirely clear what causes this. The market is certainly waiting to see what will happen with the announced “Mieszkanie na start” program, admitted Jarosław Szanajca, president of Dom Development, one of the largest development companies in the country, in an interview with the industry website PAP.
He argues that this slowdown is not a problem.
– Prices have probably stopped rising. With lower demand and sales volumes declared by companies, there is no room to raise prices, but we expected this, Szanajca said.
Real estate. Less interest in buying apartments
Could the words of the president of a leading development company herald the drop in prices expected by future buyers? Bank Pekao experts wrote in an analysis obtained by money.pl journalists that further increases in apartment prices should be expected in the coming quarters. The report indicates that the reasons for the increases include, among others: growing real incomes of Poles, aid programs lowering effective interest rates for the most vulnerable households, significant potential for improving lending and still high structural housing needs resulting from overcrowding of premises.
At the same time, data that comes to us from various sources confirms that developers are finding it increasingly difficult on the market. BIK reported that 16.4 thousand were launched in April. mortgage loans – by 11.4 percent less than a month earlier. Moreover, this was the third month of declines in the number of loans granted for the purchase of real estate.
The number of apartments sold is also gradually decreasing. Otodom Analytics data shows that May was the worst month for developers since January 2023. Only 3.2 thousand were sold. apartments on the primary market. That’s as much as 20 percent. less than in the same period last year.
There is still a shortage of at least 1 million apartments
Finally: JLL, a consulting company in the real estate industry, announced that the development offer in the 6 largest agglomerations at the end of the first quarter of this year. was 42.4 thousand apartments, which means an increase of 17%. compared to the previous quarter. Therefore, the number of apartments is increasing and the interest is decreasing, which could indicate a shift in favor of buyers.
It is estimated that the deficit of premises in our country is approximately 1 million apartments (but some research centers indicate up to 2 million apartments that would find buyers “immediately”), it must be admitted that Poland has made significant development in the field of new construction. The industry website Property News notes that we are slowly becoming European leaders in terms of the number of new apartments and houses built annually, although we are still closing the gap to the EU average in the number of apartments per 1,000 people. inhabitants.
– Poland reaching the level of approx. 450-460 apartments per 1 thousand people. inhabitants in the next 10 years seems very likely, but further growth of this indicator will strongly depend on demographic and geopolitical conditions – says Kazimierz Kirejczyk, Senior Strategy Advisor at JLL.
The cheapest apartments offered by developers
We recently checked the cheapest apartments currently available from developers. It turns out that Łódź is unrivaled in terms of price. Atal is selling a studio apartment with an area of 29 sq m in Polesie for PLN 269,000. zloty. For a slightly larger apartment (33 sq m from Okam) you have to pay PLN 371,000. zloty.
In Poznań, we have a 26-meter studio apartment for sale for PLN 330,000. PLN (Robyg). In Naramowice, Poznań, Atal offers a 32 sq m apartment. for 372 thousand zloty. The same developer has a 27-meter studio apartment for sale in Gdańsk for PLN 362,000. PLN, and in Krakow for a premises with an area of 43 sq m you have to pay PLN 469,000. zloty. More information on this subject – in the text below.
