Apartment sales up 20% in 2014

Apartment sales in Poland’s six largest cities was 20 percent higher in 2014 than in 2013, according to Reas. Developers have also filed for more building permits than a year ago. The increase in sales did not translate into a higher credit activity for banks, as at least some of the purchases were made as a form of investment alternative to bank deposits, due to decreasing interest rates, Home Broker’s analyst Marcin Krasoń told Polish Radio. The Apartment for the Youth government subsidy program has also been less popular than expected, mainly due to low price ceilings on subsidized apartments. As a result, most of the units eligible for subsidies were to be found in city outskirts, according to Bartosz Turek from Lion’s Bank. Prices have remained stable over 2014 and analysts expect a mild increase in 2015. Starting January 2015, the maximum loan-to-value ratio will be decreased to 90 percent, which means that buyers will have to raise 10 percent of the apartment value before applying for a mortgage loan. However, experts believe this will not have a major impact on the market. Polish Radio