Research

Residential market in Poland – Q2 2021

Total number of new apartments sold on the 6 largest Polish markets remained at a record level of 19 500. The offer volume declined for another quarter in a row.

July 27, 2021

It is becoming increasingly difficult to explain the very high sales by a recovery from the pandemic and the realisation of the demand accumulated a year ago. Undoubtedly, there is a growing inflow of both savings and loans into the housing market. As interest rates are likely to remain unchanged (or rise only slightly in the coming months) and the inflation rate is expected to remain at around 4%, we can anticipate that the scale of demand for hoarding will also be maintained. Speculative buying is also likely to increase.

Total number of new apartments sold by developers operating in Warsaw, Kraków, Wrocław, the Tri-City, Poznań and Łódź in Q2 2021 remained at a record level of 19,500. That means that in H1 2021 nearly 39,000 units were sold in Poland’s six largest markets - the most ever in first six months of the year. With sales clearly outnumbering new supply, the volume of units available from developers in late June 2021 declined to 37,800. This is the lowest offer level since Q3 2010, confirming major problems for developers in meeting the demand.

Focus on living in Poland

The residential market in Polish metropolitan areas is still of interest to both Polish and foreign investors. Some are ready to provide funds for expansion of development activities, while others are willing to buy buildings or entire portfolios of buildings for rent.    

The Polish living sector has reached record-breaking investment volumes in H1 2021. The first 6 months of the year saw ca. €564 million traded in this sector (some deals may not have been disclosed at this point). Hence, the amount of allocated capital in H1 2021 exceeded the annual volume of the previous record year 2019 by more than 70%, and the 2020 volume by nearly 120%. 

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More on the key factors describing the situation on the Polish housing market in Q2 2021 in the latest report. We encourage you to read. The report is also available in Polish language version.

 

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