Demand for flats halves compared to a year ago

The demand for flats, both on the primary and secondary market, has decreased by about half compared to last year, experts in the housing market say. An increase in interest rates has drastically limited access to financing for potential buyers, they explain.

According to the data provided by 15 housing developers listed on the Warsaw Stock Exchange, their sales decreased by 41% year-on-year in the second quarter. Compared to the first quarter companies sold 16% fewer apartments.

MarketPierwotny.pl expert Jarosław Jędrzyński pointed out that the developers listed on the Warsaw Stock Exchange are the industry elite, achieving the best results among domestic development companies. “As far as the entire market is concerned, the demand for new premises has decreased even more,” he said.

The outlook for the primary housing market is currently the worst in at least 12-13 years, Jędrzyński estimated. Galloping inflation, followed by the price of domestic money, is putting more and more pressure on the demand for new flats on the part of credit customers. On the other hand, a possible decline in the interest of those who pay in cash is currently a serious risk for developers.

(Business Insider)