Flat prices in Poland to decrease in 2008

Next year average prices of flats in Poland are likely to drop by 10 percent and stay on this level for a year or two, an analysis by Golden Finance reveals.

According to Golden Finance analysts, this will be the first stabilisation, or even decrease of flat prices on the Polish real estate market in two years’ time.

Last two years flat prices in Poland increased even by 70 percent. At that time some 60,000 new places were build. Experts predict that next year there will be over 60 percent more flats than in 2007.

The supply on the real estate market is very high and the demand – because the prices are too big – has started to decrease. Developers in Poland have already started a battle over customers, and are offering them for example free parking places etc. Experts say that there is a similar situation on the secondary market.

Golden Finance analysts stress however that there will be no long-term stabilisation of prices, which is connected with business cycles. They point out that the decrease of prices will cause an increase of real estate purchasers’ activity. The levelling of supply and demand may stabilise the market for some time but on the long run the prices will go up again.

Source:polskieradio.pl