Primary market continues to slow

Center of attention The price of a new two-room apartment in major Polish cities (zł./sqm)
City	In the city center	Outside the city center
Warsaw	8,500-25,000	7,000-15,000
Kraków	13,500-22,500	5,050-17,800
Gdańsk	6,900-12,000	5,500-7,000
Wrocław	6,400-16,000	5,550-11,900
Poznań	4,500-11,000	4,400-10,000
Katowice	6,400-8,500	5,500-7,550
Łódź	5,500-9,000	4,500-6,800
Source: Ober-Haus

Difficulties in getting loans have caused a decrease in sales in the primary real estate market, according to the real estate agency Ober-Haus, which published a report on the situation of the residential market in the largest Polish cities.

In Warsaw, the number of  real estate properties for sale is still growing, since developers are finishing work on those  investments begun at the beginning of the year. However, talk of prices dropping has led to fewer responses from potential purchasers.

"Cut-price offers cannot be expected" according to the report, but there is quite a large interest in the promotions offered by developers.

In Kraków, the largest demand for apartments concerns so-called "popular" apartments, priced no higher than zł.7,000 per sqm. Meanwhile, price elasticity is dictated by customers.

November was another month of decreased selling in the Tri-city residential market. According to the report, "Thirty percent down payments are, in many cases, a barrier which cannot be crossed."

In Wrocław the slowdown is also apparent. The report writes that developers there - as in other cities - are dependent not only upon banks financing their investments but also on banks providing loans to potential buyers. Those interested in purchasing an apartment in Wrocław seem to be opting for smaller sizes, the report says.

In Poznań, foreign developers are waiting for the stabilization of the market, which has translated into a decline in their interest in investing there. Though apartment prices are dropping, purchasers are still looking for bargains in good locations.

In Katowice, an innovation on the market now seeing greater popularity is the finishing of apartments at turnkey standard. Customers seem not to expect cut-price deals, and the report also cites a lack of new projects in the Katowice market.

Lastly, the primary market in Łódź is characterized by an increasing number of unsold apartments. Developers are trying to attract clients by offering good locations in nicely developed residential areas. The buyer's market still rules and according to the report this will not change soon.