Flat prices still rising

According to real-estate agency Bracia Strzelczyk, the boom on the Warsaw residential market faltered at the end of June, thanks to a change in regulations governing foreign-currency loans. However, demand for flats is still extremely high, and the number of homes on the market is insufficient. Prices have been constantly growing since last autumn, surging by 30 percent or more in the most attractive locations. Acquiring flats in Poland is still very popular among foreigners, with prices here very attractive for them. "The reason for such a huge interest in flats, apart from the unstable situation in the country, is also the planned introduction of a 19-percent tax on property sales in January 2007", said Mariusz Chołuj, of Bracia Strzelczyk. (WBJ Real Estate Newsletter)