Poland Residential Sale Survey: How are new apartments selling
How does the suspension of the Loan to Start affect the housing market? How are sales going? Who is buying? Is it possible to count on a discount? What is the current situation in the development market?
Tomasz Kaleta, managing director of sales and marketing at Develia
Uncertainty about the launch and terms of the “Startup Credit” program has persisted for many months. However, since the beginning of its announcement, we have been paying attention to the limited impact it may have on the housing market. Our estimates suggest that about 10-15 percent of customers are waiting for the introduction of this program. Currently, the proportions of apartment buyers with credit and cash are spread more or less equally.
We can say that the market has returned to relative equilibrium, and the prices of apartments in the primary market are relatively stable. Although the situation may vary depending on local markets, there is currently no reason to expect a drop in prices in Poland's largest cities. Customers can count only on small promotions for selected apartments in some developments.
Zbigniew Juroszek, CEO of Atal
We observe that some buyers are holding off on signing contracts due to the lack of a decision on government support for buyers. Invariably, we are of the opinion that it will not play such a key role as some commentators have predicted. Moreover, its selectivity in terms of target group will not be a factor in housing prices. The end of the period of suspense and uncertainty, i.e., a clear decision on whether or not to launch the support program, would have a similar effect in that most customers would convert their current bookings into development contracts.
What would definitely improve the demand as well as the supply situation would be a reduction in interest rates and, as a result, a reduction in the cost of mortgages for customers and investment credit, i.e. development companies. Since the end of the vacations, we see that more customers are deciding to buy apartments. We expect that the fourth quarter, which has begun, will bring an increase in contracting. Accordingly, we are consistently meeting construction schedules and sales launches.
Agata Zambrzycka, director of sales and marketing at Aurec Home
Due to the state's recent flood-related spending, the introduction of the “Credit to Start” program in 2025 seems unlikely. Currently, the housing market is witnessing, on the one hand, a dynamic development of social housing, which since the beginning of this year has recorded an increase in the number of completed apartments by more than 76 percent compared to the same period last year. On the other hand, due to the lack of an active government subsidy program, the offer of available apartments in Poland's seven largest real estate markets has reached record levels.
Despite the current market situation, we are not giving up on our plans to develop new projects. We are working intensively to maintain a high standard in line with customers' expectations. We are systematically commissioning apartments from successive stages of the Miasteczko Jutrzenki project - currently the Lavender District, where we offer a parking space free of charge to selected units. In March of this year, we also began selling apartments from the Fabrica Ursus development, which refers to historical elements of the former Ursus factory. Thanks to our own financial resources, we offer selected high-standard apartments priced from PLN 13,367/sqm.
Magdalena Gosk, Sales Leader BPI Real Estate Poland
In the third quarter of 2024, the real estate market was characterized by a typical seasonal slowdown in apartment sales during the holiday season. During this time, as expected, customer activity was lower. However, with the onset of September, we saw a marked recovery, as evidenced by the return of customers who postponed their purchase decisions until after the vacations. Although we are seeing an extended decision-making process on the part of buyers, interest in our offerings remains high.
We are optimistic about the coming months, expecting this trend to continue. We are constantly introducing various special offers and discounts for our customers. However, we see that customers are showing particular interest in our investments due to their excellent location, and the fact that three of the projects we offer are already ready for delivery is also an additional advantage.
Joanna Chojecka, sales and marketing director for Warsaw and Wrocław at Robyg Group
We believe that government programs are important, but they do not significantly affect the development of the residential market in Poland. Demand for apartments persists all the time, mainly because of the significant gap that is still recorded in Poland. Therefore, the support of Poles in the ability to buy their M has much more impact on issues concerning the general economy, fertility rates, etc.
From the point of view of developers, however, much more important are the opportunities to increase supply - that is, to introduce apartments to the offer. We keep calling for speeding up local government administrative procedures. This is a much more important aspect in order to be able to offer Poles the largest possible range of apartments, including promotions. We constantly note the activity of buyers.
We believe that the demand for apartments is not as tied to government programs as some people portray it, and banks still have interesting financing offers for apartment buyers. We support our clients in obtaining optimal financing and in credit procedures.
Andrzej Gutowski, Sales Director of Ronson Development
The suspension of the “Loan to Start” program has caused many customers, tired of waiting, to go on a shopping spree. This limits the ability to give discounts, especially in large cities. Major reductions are not expected, but prices will remain stable. At present, buyers are mainly customers with 50-60 percent of their own contribution, who support themselves with credit, so interest rates are not decisive for them. The 2025 budget lacks funds for new housing programs, and the government is focusing on other activities, which means new support is unlikely to come. Although 2024 may be weaker than 2023, but the housing market remains stable.
Susanna Należyta, commercial director at Eco Classic
We are currently facing limited demand due to high interest rates. Many people simply do not have the opportunity to purchase an apartment. The introduction of the program in its announced form would certainly help primarily those purchasing housing for their own needs. We estimate that the restrictions on the BK2% program and the large supply will cause a recovery, but will not contribute to price increases.
Marcin Michalec, CEO of Okam Capital
Many young and lower-income people have been waiting for the entry into force of the “Loan to Start” program, which would allow them to realize their plans to buy their own apartment. Those interested in buying units in the Lodz market can take advantage of the special offer we have prepared for the Lodz Real Estate & Home Construction Fair. In the NOW project located in the vicinity of the New Center of Łódź, modern apartments can be purchased at prices starting from PLN 350,000. On the other hand, in the case of the PROGRESS Zone, located in the very center at Piotrkowska Street/Kosciuszko Avenue, a discount of PLN 50 thousand is waiting for customers to purchase the units, as well as the opportunity to finish the apartments with architects from the KODO studio. We also anticipate a special offer on the occasion of Open Days at Warsaw's Cityflow project.
Damian Tomasik, CEO of Alter Investment
The suspension of the “Loan to Start” program for the moment adversely affects the market. Any uncertainty that is created by the announcements of the programs and the subsequent withholding of decisions puts buyers at a great disadvantage. Those who today have the need to change their apartments often cannot make a decision by postponing the purchase until clear information about the program is announced, while those who no longer have that time, when the program enters, will lose the opportunity to improve their living conditions. This has a significant impact on the housing market, especially for young people, who often make up a large portion of the program's recipients.
Today's new housing market is characterized by high dynamics, but also by considerable stratification. In large cities, we continue to see high demand, especially among wealthier individuals and investors who are looking for property as a security of capital in uncertain times. By contrast, in smaller towns and on the outskirts of metropolitan areas, demand is more sensitive to the availability of credit and the support of government programs.
The main group of buyers are investors, people with more equity and those who are less dependent on mortgages. On the other hand, young families and those just starting out face a greater challenge, especially after the suspension of support programs.
Such a situation may also accelerate the investment decisions of those who are thinking about buying an apartment, fearing further price increases. In the longer term, Poland's housing market still has great potential, and demand for apartments, especially in large cities, will remain high and unsatisfied.
Source: dompress.pl
Photo: BPI, Czysta 4, Wrocław
