NBP: Value of residential real estate assets rises to about PLN 6.5 trillion in 2022

The estimated value of residential real estate assets in Poland at the end of 2022 was about PLN 6.5 trillion, up from PLN 5.8 trillion at the end of 2021, while commercial real estate assets were about PLN 380 billion, up from PLN 355 billion in 2021, the National Bank of Poland (NBP) said in its "Report on the Situation of the Residential and Commercial Real Estate Market in Poland in 2022." The value of residential real estate at the end of the period under review was equivalent to about 211% of GDP, and commercial real estate to about 12% of GDP.

During the period under review, the number of housing units in the stock per 1,000 population increased (amounted to about 413 against 405 in 2021), as well as the average floor area of a housing unit per person (about 31.1 against 30.4 in 2021). The average number of people per apartment decreased (2.4 in 2022 vs. 2.5 in 2021). The average size of a completed apartment for sale or rent in Poland decreased to 62.4 sqm from 63.1 sqm in 2021, according to the report.

Summing up last year, the NBP recalls, among other things, that events in the real estate market in 2022 were largely due to the effects of the COVID-2019 pandemic, which was compounded by the turmoil caused by Russia's aggression against Ukraine in February 2022. The significant increase in uncertainty caused by the pandemic initially resulted in a sharp reduction in housing demand. However, after significant support for the economy from fiscal and monetary policy and a reduction in uncertainty, demand, especially fueled by credit, picked up significantly in 2021. The outbreak of the Russian-Ukrainian war and its economic consequences, including an increase in inflation, caused shocks to both the demand and supply sides of the real estate market. The cost of financing the purchase of housing has increased significantly, which has dramatically inhibited the demand for credit and housing sales. Despite the decline in housing sales, their prices rose significantly due to a sharp increase in the prices of energy carriers, land and construction materials and labor. Developers gradually began to reduce the work front. At the same time, demand for rental housing grew strongly, which contributed to previously unrecorded increases in rents.

Source: NBP and ISBnews