After five quarters of the pandemic, housing prices up by 9%

The outbreak of the pandemic and the related economic turmoil resulted in the expectation of a decline in housing prices. Meanwhile, after five quarters of the pandemic, the average transaction prices on the primary market in Warsaw increased by 9 percent after a temporary decline, according to the data of the National Bank of Poland. The situation was different during the crisis after 2008 when housing prices dynamically fell and stabilized at a level lower by 10 percent. CBRE experts indicate that not only the occurrence of a crisis is important for the preservation of the market, but also its wider context.

"The global crisis of 2008 was the result of economic processes, the first signals of which appeared earlier. Its outbreak found home prices lower than a few quarters earlier. Admittedly, at the time of the crisis, a temporary statistical increase in offer prices was visible due to the rapid sale of the cheaper offers, but a drop in transaction prices was quickly recorded. At times the drops reached even a dozen or so percent compared to the pre-crisis level and slowed down only after a few quarters. credit conditions and interest rates have fallen. As a result, instead of falling, we are seeing a further rise in real estate prices," Agnieszka Mikulska, CBRE housing market expert, said.

"The occurrence of a crisis is not synonymous with a collapse of the housing market and a fall in prices. It is important whether the crisis is hitting the foundations of housing demand or is it capable of creating additional demand, related for example to the need to protect savings against rising inflation and to perceive real estate as a safe asset," Agnieszka Mikulska added.

(WBJ)