Most apartments in the largest cities are bought for cash
22:57
In Q1, 70% of apartments in the largest cities were purchased for cash. This means that wealthy Poles spent PLN 5.9 billion on this purpose in Q1,” HRE Investments wrote in its Wednesday analysis.
In the first quarter, Poles financed the purchase of new apartments in the largest seven cities in as much as 70 percent of their purchases. - was written in the Wednesday analysis of HRE Investments.
“If we were to exclude cash from borrowers (own contribution to a loan), it would still turn out that developers in the 7 largest cities financed as much as 60 percent of apartment sales with cash. All in all, this means that more than a half of the money that found its way to developers’ sales offices in Q1 was Poles’ savings - live cash used to buy apartments without support in the form of mortgage loans,” Bartosz Turek, HRE Investments’ chief analyst, wrote in an analysis.
“For new apartments in Gdańsk, Gdynia, Kraków, Łódź, Poznań, Warsaw and Wrocław, wealthy citizens spent as much as PLN 5.9 billion in cash. This is the highest result in history. To show the scale of the phenomenon, it is worth converting it into more tangible things. So it turns out that the mentioned amount corresponds to purchases of almost 12 thousand new apartments. This is the estimated number of transactions financed only with cash,” wrote Bartosz Turek.
According to him, one of the reasons for such large amounts of cash flowing into the housing market is the nearly zero interest rates. This makes more people willing to invest in real estate. You can earn even several dozen times more on their rent than on a deposit. Besides, according to the analyst from HRE Investments, real estate is perceived as a safe haven for capital.
