Apartments to hold their prices, but bargains may be more frequent

In 2021 prices of apartments in the biggest markets grew at a double-digit pace, breaking all previous records. In some locations one could even pay 1/5 more per sqm than a year ago, shows the latest Evaluer Index 2022 report prepared by Emmerson Evaluation. The authors point out that the current situation in the residential market is completely different than a year ago. Due to the low availability of credit, half or even two-thirds of those willing to purchase an apartment with bank support may leave the market. At the same time, record-high construction costs do not allow developers to make cuts. They will balance lower demand with higher supply. On the primary and secondary market, more often than in previous years, price bargains can happen instead, forecast the authors of the report.

"Real estate market conditions in 2021 were much better than before the pandemic. Predictions that the housing market was in danger of collapse through Covid-19, which might have been the case if not for the fact that interest rates were kept at record lows during this period, did not come true. Additionally, 2021 was a year in which developers reported record sales. The first half of the year in particular was exceptionally fruitful. On the other hand, its end brought abrupt changes in the market due to high inflation and rising interest rates," Dariusz Książak, President of Emmerson Evaluation, said.

(WBJ)