The falls in apartment sales in the second quarter of 2020 were severe and concerned both Warsaw, Kraków, the Tri-City, Wrocław, Łódź and Poznań. The last city turned out to be the most stable in terms of sales. While in other voivodeship capitals the declines in comparison with the year ranged between 37-55 percent, in Poznań it was only 10 percent. However, lower demand for housing has not moved prices. In all markets, they are more expensive on annual basis, in Kraków by as much as a quarter, according to the data of redNet Property Group and CBRE.

“In the three cities, sales dropped by as much as half in the second quarter. It concerns Warsaw, where 55 percent fewer flats were sold than a year ago, Łódź, where the decrease was 50 percent, and Tricity with a 48 percent decrease. Of course, this is a direct consequence of the coronavirus epidemic. Difficult contact with clients, remote work and the lack of opportunities for meetings had a negative impact on the housing market and made the work of sales offices more difficult,” Robert Chojnacki, co-owner of redNet Property Group, said.

The beginning of the coronavirus epidemic has raised hopes among potential apartment buyers for price drops. It turns out, however, that not only are there no discounts, but in several cities, prices in the second quarter increased both y/y and also compared to the previous quarter. 

“These increases were not large, but for example in the Tri-City in June prices were 4.5 percent higher than in March. This shows that the epidemic has not left its mark on housing prices. However, there is a clear decline in demand. In the second quarter, both individual investors and buyers of apartments for their own needs withheld decisions until the situation stabilizes. It can be expected that in the coming months we will see a rebound, although the trend compared to the year will continue to decline,” Agnieszka Mikulska, housing market expert, CBRE, added.

(WBJ)