Developers getting ready for growing interest in premises

In the last few years, the Polish real estate market has been constantly in a bull market, but the SARS-CoV-2 pandemic has temporarily shaken it. Customers limited the demand, which resulted in weaker financial results of developers, as well as the suspension of new investments. The situation has started to stabilize in recent weeks.

According to a report by redNet Property Group and CBRE, in the second quarter the sale of apartments dropped significantly, in some markets (e.g. Warsaw or Łódź) by over 50 percent. However, analysts and developers expect a rebound in the coming months.

"The real estate market is in better shape today than in previous months. Prices are not falling, although most customers would expect it. However, we are not at a point where it would be necessary to lower prices. In our opinion, the market is strengthening, although we believe that supply will decline slightly, because some developers do not start new investments or the next stages," Boaz Haim, CEO of RONSON Development, said.

The forecasts for a decline in supply may also be confirmed by GUS data, according to which the construction of 121,700 units was started in the period January-July this year. flats, i.e. by 11.4 percent less than in the same period a year earlier. Also, the demand for flats is slightly lower than last year. However, analysts indicate that the market is stabilizing and demand is recovering.

"Investors are interested in the residential real estate market because the pandemic has shown that it is a very safe place to allocate funds, and the residential sector is the strongest among all market segments. the past," Boaz Haim emphasized.

(Newseria)