Despite the epidemic, the prices of new apartments in Warsaw were still rising in the first quarter of 2020. The average price of an apartment available in the offer for the first time in history was PLN 11,100 per sqm, according to the latest CBRE report. 

In the first three months of the year, nearly 5,600 apartments were sold, which is a very good result, although lower than the result from the fourth quarter of 2019. However, the market already shows a reaction to the announced slowdown in the economy, which is mainly manifested by a smaller number of apartments for sale and problems with launching new investments.

“Demand on the Warsaw residential real estate market in the first quarter of this year it remained at a high level, but the epidemic will soon begin to impact. At the end of March, the number of new apartments available on offer, as well as the number of transactions concluded, clearly decreased. These trends may deepen in the future, along with the decreasing dynamics of placing apartments on the market and increasing caution of buyers. The developers will try to maintain the offer prices at the current level, and as a result the process of selling the apartment will be extended. The future of the market currently depends primarily on the behavior of individual investors and the situation on the labor market. In the long run, part of individual demand will probably be taken over by institutional investors interested in purchasing entire projects for rent,” Agnieszka Mikulska, an expert in the housing department, CBRE, commented.

(WBJ)