Heading for homes

Warsaw's rapidly growing apartment prices show that demand is continuing to surpass supply. If banks continue to grant loans at the current rate, and unless Warsaw's City Hall decides on the city's spatial-development plans, developers won't be able to meet demand with greater numbers of housing projects.

Despite the growing prices, Warsaw's inhabitants are still keen on buying apartments. CB Richard Ellis (CBRE), in conjunction with Murator Expo, recently presented the results of a survey indicating which criteria apartment buyers take into consideration when choosing a location, quality standard and financing for a new apartment in Warsaw.

Why do we buy?

According to the survey, over 30 percent of respondents purchase a new apartment because they plan to start a family or have more children. Twenty-seven percent say the decision comes from a desire to move out of their parents' home, and 11 percent see buying an apartment purely as an investment.

Forty-six percent of potential buyers say that easy and convenient access to public transportation is the most important criteria when deciding on an apartment's location. Thirteen take into account the car-friendliness of the location. Only two percent base their decision on access to shopping malls and other amenities.

Bemowo is best

Bemowo was named the most popular district in Warsaw, and about 30 percent of respondents who are looking to buy an apartment are keen on purchasing property there.

According to CBRE's Maria Hahn, Bemowo's location and its prospects for infrastructure development are among the reasons for the district's popularity. "Bemowo is located within a convenient distance from Warsaw's city center," she said. "Plans for a second metro line reaching Bemowo, as well as plans to build the outside bypass, will make this district very attractive in the future. Customers, especially young ones, see that tendency and this is why Bemowo is so popular."

In addition, the survey shows that prices of new apartments are crucial. The average price was zł.4,650 gross per sqm in the second quarter, which was 17 percent below the Warsaw average.

Mokotów, Żoliborz and Ursynów districts were listed behind Bemowo. Włochy and Wesoła districts were named as the least popular.

Ways to pay

Easy access to mortgages and an open period to repay the debt lead over 33 percent of respondents to consider purchasing an apartment entirely financed by a bank loan.  Fifteen percent plan to use only savings and 41 percent would use both savings and a mortgage. Only a little over 10 percent would use finances from selling another property.

The survey also showed that 53 percent of respondents are willing to pay between zł.4,000 and zł.6,000 per sqm, while 27 percent would pay only up to zł.4,000. Another 18 percent of potential buyers could spend between zł.6,000 and zł.8,000. Only two percent are ready to pay more than zł.8,000 per sqm.