Visegraded

According to research by consultancy King Sturge, Poland is the most expensive country among the Visegrad Group - Poland, the CzechRepublic, Slovakia and Hungary - in terms of residential prices. In turn, Warsaw was the most expensive capital city among the countries, with the average price per sqm for an apartment in a new building amounting to EUR2,641 (zł.8,500) in H1 2008. This amounted to an 8.5-percent increase over H1 2007.

Prague was second after Warsaw in terms of new apartment prices, with the average price per sqm equaling EUR2,486 (zł.8,000), but the y/y increase was just 1.3 percent. The Prague market is difficult for new project development as there is not enough space for construction in the city's historic center. New projects usually are developed on or near the city's outskirts.

The average price per sqm in Bratislava amounted to EUR2,165 (zł.6,970) during H1 2008. The Slovakian capital saw the biggest yearly increase in the residential sector among all Visegrad capitals - 23.9 percent. Meanwhile, Budapest had the lowest average price per sqm - approximately EUR1,290 (zł.4,150) - which marked a 2.1-percent y/y price increase.

According to King Sturge, at an average price per square meter of EUR2,363 (zł.7,821), Poland's regional cities were also more expensive than their Visegrad peers. However, the firm's research noted that prices in cities such as Kraków and Gdańsk had reached their peaks and started to drop in H1 2008.

"The price of residential living in Poland has reached its peak and we can possibly expect its stagnation or even decline. The average growth of the Polish market is expected to be up to two percent," said Michal Padych, head of residential department in King Sturge's Slovakian office.