6,700 apartments purchased in Warsaw in Q1 2021 at prices higher by over 8% y/y

In the first quarter of this year. the demand for flats in Warsaw increased. Over 6,700 units were sold, which is almost 30 percent more than in the previous quarter and over 21 percent more than a year ago, according to the latest data from redNet Property Group and CBRE. The average asking price of flats bought in the first months of this year amounted to PLN 10,656 per 1 sqm, i.e. 1.5 percent less than in the previous quarter, but 8.1 percent more on an annual basis. Maintaining such high demand in a situation of limited supply may result in further price increases. Especially since the costs incurred by developers are rising.

“Demand in the Warsaw housing market is doing great even in a pandemic. Despite the price increases, the interest in the premises is at a high level, which is the result of, among others, low interest rates, resulting in lower and lower returns on investments and other low-risk forms of investing. Consumers are looking for ways to allocate and protect their capital, fearing the effects of inflation, and housing, despite the pandemic's lower interest in renting, is still considered a stable investment, especially when compared to other available options. The increasingly realistic prospect of ending the pandemic will still support demand, which means that we may observe a further increase in prices in the coming months. On the other hand, problems with delivering new supply at prices acceptable to buyers are a threat to the development of the market,” Agnieszka Mikulska, an expert in the housing department of CBRE, analyzed.

(WBJ)