A significant drop in the number of apartments delivered by developers and a general increase in the prices of construction and assembly production – these are just some of the data from the Central Statistical Office (GUS) on the situation in the real estate industry at the beginning of 2021. According to Angel Poland Group experts, the rising costs of works will be a significant challenge for developers in the coming months. We are seeing a significant increase in commenced investments and issued building permits on the market.
At the beginning of 2021, more than 17,000 flats – this is 7.5 percent less than a year earlier in the same period were put into use. Most of all, developers, who handed over the keys to 10,000 dwellings (12.6 percent less than the year before), recorded significant drops. Interestingly, individual investors slightly (by 2.8 percent) improved their results from January 2020 and in January 2021 put into use almost 7,000 apartments. In the opinion of real estate experts from Angel Poland Group, although the data from the GUS from the point of view of developers are not very positive, not all indicators are unfavorable for them.
“Analyzing the GUS data in more detail, it can be concluded that although the number of completed flats has dropped temporarily, other indicators raise optimism in the real estate market. In January, developers received over 30 percent more building permits than the year before. One of the main reasons, of course, is that the application for building permits has accelerated towards the end of last year in order to be in time for changes to energy standards. In January, developers started the construction of over 12,000 flats, which means an increase of 24 percent compared to the previous year. For the sake of contrast, individual investors have started the construction of 4,700 apartments, which translates into a decrease of almost 13 percent,” Tomasz Karpiel, operational director of Angel Poland Group and real estate market expert, said.