Are high flat prices in central city areas, combined with limited credit availability, pushing buyers toward developments on city outskirts and in the suburbs? Where can such developments be found, and at what prices? How much cheaper are these properties compared to similar flats in central districts? Tomasz Kaleta, managing director of sales and marketing at Develia: We have not observed a decline in interest in properties in central areas of cities, on the contrary. Our data shows that the suburbs are dominated by the credit customer (around 80 per cent of transactions in these locations with the average for the entire market at 50 per cent). The high level of interest rates has significantly reduced the purchasing capacity of this customer group, making it more difficult for them to obtain financing. In the case of properties in central city districts, this problem is less acute, as a customer with limited creditworthiness usually decides to purchase a smaller, more compact flat, but in a location that meets their criteria. Agnieszka Majkusiak, sales director at Atal: The location and standard of an investment are invariably the key criteria segmenting the residential market. Projects from the popular segment, located away from the city centre, are usually cheaper. Nevertheless, an important parameter is their transport accessibility and proximity to infrastructure, which we pay attention to when designing our investments outside the centres of large cities. They can be an attractive purchase alternative, especially for families looking for flats of a larger size. The approximately 15 to 20 per cent price difference resulting from the location in the suburbs makes it possible to purchase additional square metres of flat, with the proximity of green areas being an additional advantage. However, it is also possible to find investments in our portfolio that are located close to city centres, where the price difference will no longer be significant enough to make the commuting costs worthwhile for years. An example is the excellently located Francuska Park estate in Katowice. Atal's offer also includes projects outside the centre, which, due to good communication and saturation with infrastructure, find numerous buyers. These include the Atal Apollina investment in Kowale near Gdansk, Żerniki na Novo in Wroclaw and Skwer Harmonia in Krakow. Shraga Weisman, CEO of Aurec Home: Certainly, high property prices and unfavourable credit policies make it difficult for buyers to purchase flats, especially in the centres of large cities, where the price per 1 sq m is always higher. For example, in the capital's primary market, the average price in October 2024 was PLN 17,795 per sq m. This is why many buyers are looking for modern apartments in green districts, slightly distant from the centre, but with very good transport links. We carry out investments in the spirit of the 15-minute city idea, offering flats in multifunctional neighbourhoods where you can get to work, a shop, a park or the office in 15 minutes. Fabrica Ursus, our investment, the next stage of which we have just launched for sale, is being developed in the dynamically developing district of Warsaw - Ursus. Its proximity to the city centre, very good rail connections (SKM, KM) and easy exit from the city via the A2 road make this location exceptionally convenient. We offer buyers spacious and compact interiors, large balconies, high windows and industrial design, all at affordable prices. Małgorzata Mellem, member of Budlex's Management Board: We are indeed seeing a change in the preferences of many customers who, faced with high property prices in city centres and the more difficult availability of mortgages, are increasingly considering buying flats in the suburbs. Such locations are becoming attractive not only because of lower prices, but also thanks to the increasingly better infrastructure and greater living comfort offered by quieter neighbourhoods. We adapt our offer to the different needs of our customers. One example is the Enclave development in Bydgoszcz, located in a well-connected but not central part of the city. The average prices per square metre in this investment are around 20 per cent lower compared to properties in central districts of a similar standard. Similarly, the Winnica Apartamenty project in Toruń offers more affordable flats. The growing popularity of locations away from city centres is due to their attractiveness in terms of price, as well as the possibility of creating space tailored to the needs of residents. In our investments, we strive to combine an affordable price with a high standard and attention to the location, which will provide convenience and access to infrastructure. Michał Witkowski, sales director at Lokum Deweloper: Such a situation could take place in a balanced credit market. Then, customers with limited creditworthiness would face a choice - a smaller square metre in the centre or a larger one in an attractive location, but far from the centre. At present, however, due to the lack of any policy to support borrowers and record high interest rates with no clear prospect of them changing, only the wealthiest customers can afford to buy a flat. If they need to prop up the purchase with a loan, it is to a small extent, on top of which they have a high income that allows them to take on such a commitment. As a result, large flats in the centrally located Lokum Porto development in Wrocław are currently the most popular in our offer. They are about 20 percent more expensive than the units available in the Lokum Verde development, located in a picturesque, green district of Wrocław, further away from the centre. Barbara Marona, Sales Office Manager, Matexi Polska: Location has always had, and continues to have, a key influence on property prices, as it largely determines the price of the land, which in turn translates into the final price of the flat purchased. Proximity to the centre, transport accessibility, quality of the neighbourhood and infrastructure are the main factors that influence the value of flats. In addition, external factors such as interest rates and the availability of credit have a strong influence on customers' purchasing capacity, which may lead them to consider purchasing flats in different locations. Customers' decision is also influenced by lifestyle changes, such as the growing popularity of remote working. More and more people, without the need to commute to work every day, are opting for flats in locations away from the centre, looking for more space and a quieter environment. In response to these changing needs, we offer flats in a variety of locations - both in the city centre and on the outskirts. This allows us to cater to the preferences of different customer groups. We make sure that all our investments, regardless of the location, are well connected and provide the full infrastructure necessary for a comfortable everyday life. In Kraków, we have four investments with varying standards and prices. The prices of flats in locations away from the centre are on average 30 per cent lower than in investments located in the central parts of the city. For example, the price of a three-room flat in our investment Kameralny Prokocim, located on the outskirts of the city, is about 13,000 PLN/sqm, while in the investment Apartamenty Portowa located in the central district of Zabłocie, prices of flats of a similar size start from about 18,000 PLN/sqm. Joanna Chojecka, sales and marketing director for Warsaw and Wrocław at Robyg Group: We do not see a trend of customers changing their preferences due to price in terms of location or looking for flats away from city centres. On the contrary, the good location of estates is one of the main decision-making factors, and proximity to the centre and good communication are the key elements that customers pay attention to. This is why we are launching new stages of such Warsaw developments as Sady Ursynów, near the Służewiec Race Track. It is an excellent location in a neighbourhood with a developed infrastructure and great communication with all parts of the city. Our second new, excellently located investment is Rhythm of Mokotow. Dolny Mokotow is another Warsaw district after Ursus, whose possibilities we were the first to see and we started pioneering investments, discovering the beauty and changing the face of the area. There are vast spaces surrounded by greenery near Lake Czerniakowskie and the Vistula Bend. Our flagship investment near the centre of Warsaw is also the prestigious Royal Residence development in Wilanów, where we already have the last stage on sale. The fully developed area of Wilanów is the last chance to live in a unique place with full access to all amenities. Andrzej Gutowski, Sales Director of Ronson Development: Despite the high prices of properties in the central areas of cities and the limited availability of credit, buyers are unlikely to change their preferences in favour of developments away from the centres or located in the suburbs. Location attachment is considerable, with many people deciding to pay extra to live in their preferred neighbourhood, even at the expense of a smaller area. Changes of location occur mainly when prices per square metre in individual districts equalise, which encourages transfers, e.g. from Białołęka to Ursus. If, on the other hand, buyers who are used to living in central districts decide on an apartment further from the centre, they usually choose to build a house. Which indicates an improvement in the financial situation of the client in question. Source: dompress.pl Photo: Panoramiqa, BPI Real Estate Poland