Poland: Analysis reveals decline in apartment prices on secondary market in Q3

Recent analysis indicates a downward trend in the average offer prices of secondary market apartments across provincial cities during the third quarter of 2024. The report, which examined data from 18 provincial capitals, revealed that prices for studios and larger apartments saw more declines than increases.

According to the findings, average offer prices for studio apartments fell in eight cities, while two-room apartments decreased in six locations, and three-room apartments saw declines in eight cities. Additionally, many areas experienced price stabilization at levels similar to the previous quarter.

Rafał Bieńkowski from Nieruchomosci-online.pl noted, “Sellers, faced with the challenging market conditions, are finally adjusting their price expectations. Particularly for two- and three-room apartments, there are only a handful of cities where price increases were recorded last quarter.”

The analysis revealed that average prices for studios decreased by 2% to 6% in cities such as Białystok, Gorzów Wlkp., Kraków, Łódź, Opole, Rzeszów, Szczecin, and Wrocław. Conversely, prices in Warsaw, Bydgoszcz, and Toruń remained stable, with fluctuations reported at less than 1%.

Two-room apartments saw average bidding rates drop by 2% to 7% per square meter in various cities, including Białystok, Olsztyn, Opole, Rzeszów, Szczecin, and Toruń. Notably, prices in Gdańsk, Katowice, Kielce, Kraków, Łódź, Warsaw, Wrocław, and Zielona Góra remained steady, reflecting the market stabilization observed since the second quarter.

The quarterly adjustments for three-room apartments were slightly less pronounced, with decreases of 1% to 3% noted in cities like Białystok, Katowice, Kielce, Łódź, Olsztyn, Opole, Rzeszów, and Szczecin. However, Bydgoszcz and Lublin were exceptions, where slight price increases were recorded. In other cities, price changes were minimal, typically less than 1%.

Bieńkowski remarked on the current market sentiment, stating, “This marks a significant shift from the first half of the year when price reductions were infrequent. There is noticeable uncertainty among buyers and sellers, with some awaiting the government’s proposed housing program while others anticipate interest rate cuts next year. This situation should not be interpreted as a market collapse; rather, sellers are beginning to recognize that price adjustments are necessary to attract buyers.”

Looking ahead, real estate agents predict that apartment offer prices are unlikely to rise in the fourth quarter of 2024. A recent mood survey conducted by Nieruchomosci-online.pl indicated that only 29% of intermediaries expect price increases in the near future.

Source: Nieruchomosci-online.pl and ISBnews