Record number of apartments booked with developers, increasing real estate prices

In April 2023, a record number of new apartment reservations were made with developers in Poland's seven largest residential markets. The average daily reservations exceeded 140, a 55% increase from the previous month, which suggests an uptick in property sales and potential for rising real estate prices. This trend is partially attributed to concerns about the introduction of the new housing program, "Mieszkanie na start," which could spur demand and raise prices.

However, the number of new residential units handed over by developers has decreased by nearly 6% y/y in January and February 2024. Conversely, there has been a significant increase in construction permits and new housing starts during the same period, indicating that developers are preparing for increased demand. Despite this, housing supply may struggle to keep up with demand, leading to potential price increases.