In line with the assumptions of the Polish Deal program, which was recently presented by the government, projects implemented after the pandemic will bring significant socio-economic changes. Extensive plans include, among others, various types of public investments and government assistance in purchasing apartments, which will contribute to increased activity in the construction sector throughout Poland. Especially, that the funds allocated to the implementation of the program are substantial.

The financing estimated at approximately PLN 650 billion from the Bank Gospodarstwa Krajowego fund and the capital of PLN 770 billion received under the EU Cohesion Policy and the Reconstruction Fund is to be used by, among others, local government units. Their task will be to implement public investments. Local governments are to run local projects over the next 5-7 years.

“The aid program announced by the government is an impulse for the development of construction in our country. Apartment buyers will receive a huge boost of funds, which will most likely also intensify the activity of developers in the housing sector. In a situation where the support applies to both the primary and secondary markets, the risk of price increases is inevitable. The rapidly growing demand may translate into even faster price increases on the market,” Katarzyna Tencza, Associate Director Investment & Hospitality at Walter Herz, said.

“The price pressure could be limited by an increase in the supply of new apartments, especially that the market offer is constantly decreasing. The announced making communal investment plots available in the largest cities would be of key importance in reducing the housing deficit. I think that, in addition to supporting apartment buyers, it is also necessary to introduce mechanisms supporting their production to maintain the market balance,” Katarzyna Tencza added.

(WBJ)