Before the epidemic, housing prices in the largest Polish cities grew by leaps and bounds - in 2019, by an average of 10% for the primary market and 14% for the secondary market, we read in the latest EVALUER INDEX report prepared by Emmerson Evaluation. However, coronavirus will reverse this trend. Experts expect a fall in housing prices of 5-7% annually. By the end of 2022, they may reach levels even about 15-20% lower than the peak, which was recorded during the recent bull market. On the primary market, part of this correction can be implemented not through classic price reductions, but in the form of various bonuses offered for purchased flats, such as free storage cells or parking spaces.

The scale of the bull market in the housing market is even better illustrated by historical analysis. According to calculations from the EVALUER database, in the last 6 years, i.e. since 2014, prices of new apartments in Gdańsk and Sopot increased by as much as by half (by 52 and 50% respectively). Wrocław and Warsaw were in third place with a 45 percent increase. However, the emergence of the COVID-19 pandemic resulted in the market freezing in the second half of March and in April.

"From the beginning of May, we have been observing a gradual return of the market to normal. It should be emphasized, however, that in the meantime virtually all banks have significantly tightened their lending policy, raising the required level of own contribution, margins and limiting the source of income accepted in calculating the creditworthiness. On the other hand, the interest rate on deposits further reduction as a result of two NBP interest rate cuts, which further encourages the investing of cash on the real estate market. However, the number of people who can afford such purchases nowadays is limited, "indicates Dariusz Książak, President of Emmerson Evaluation.

(WBJ)