In June, we saw a sharp increase in developer activity in the residential construction sector, assesses HRE Investments.
"It was a response to the rapidly recovering demand for flats, the effect of unblocked administrative procedures and another symptom of a quick return to normalcy in the housing sector," Bartosz Turek, HRE Investments analyst said..
As he indicated, the sale of flats quickly returning to normal is probably one of the main reasons why June brought very good data from the housing sector.
The biggest positive surprise, however, is the increase by more than a half in relation to May in the number of flats whose construction was started by developers, HRE Investments also noted. According to the company, it is the best predictor of a quick return to normality in the housing market.
As Turek noted, record-low interest rates are of key importance for the housing market. Thanks to them, loans are now one-third cheaper than at the beginning of the year, although banks impose much higher requirements on potential borrowers regarding their own contribution or income stability.
Low interest rates also result in an almost zero interest rate on bank deposits, and this, with the still elevated inflation, directly forces many people to look for a method other than a deposit, the analyst pointed out.
Many Poles find such a safe haven for capital on the real estate market. This is probably why already in the second half of April we observed an increase in interest in apartments in large cities.